Tuesday August 21, 2007 - 12:49:03 GMT
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Daily Forex Market Commentary for Tuesday, August 21, 2007
Tuesday, August 21, 2007 8:00 GMT
Daily Forex Market Commentary
By: Cornelius Luca, Currencies Analyst, GFT
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GFT Daily Market Commentary
The FX markets had a day of uneasy calm on Monday, with the stocks up in the wake of the cosmetic move the Federal Reserve executed on Friday. But the T Bills yields collapsed and this tends to be a huge red flag â€“ is there a big name about to fold? Or worse? On this crisis milieu itâ€™s even more difficult that usual to call the market â€“ the best take is another wave of selling of the yen crosses.
The euro/dollar treaded water around a secondary Fibonacci retracement level at 1.3475 on Monday and was stuck in an inside range. Sideways to lower trading is expected.
Below 1.3410, support remains at 1.3358. Distant support is at 1.3265.
Initial resistance is still in place at 1.3550. Above 1.3625 there is resistance at 1.3700. This is followed by 1.3775.
Oscillators are declining.
Dollar/yen extended its recovery on Monday, but this shouldnâ€™t last long. Following an early mild recovery the sell-off should resume as the pair remains under the trendline rising since January 2005, now at 116.00.
Immediate resistance is at 115.50 from another 50-point pivot, which targets 115.00 and 116.00.
Initial support is at 114.20 from another 50-point pivot that targets 113.70 and 114.70. Below 113.25, support is at 112.90 from a 50-point pivot that targets 113.40 and 112.40.
Oscillators are declining.
Sterling/dollar struggled higher on Tuesday but was stuck within Fridayâ€™s ample range. The pair is oversold in the uptrend, so the initial move should be up â€“ donâ€™t expect more than a mild upmove.
Initial resistance is at 1.9900. Strong resistance follows at 1.9937. It is very unlikely that the resistance at 2.0015 will gives way. More weakness remains in store, but an immediate bounce is likely.
Immediate support is at 1.9820. The next floor is at 1.9750. A break below the pivotal level at 1.9653 would signal a further slide to 1.9550.
Oscillators are mixed.
One day after nailing a one-week low dollar/Swiss franc marked time in a tight range. Following a brief recovery the medium-term selling pressure should resume.
Initial resistance is at 1.2100. The next level is .2140. Above 1.2219, distant resistance is at 1.2310.
Immediate support is at 1.1995. Below 1.1870, support is seen at 1.1819. Next levels are 1.1788 and 1.1740
Oscillators are rising.
DISCLAIMER: This forum and the information provided here should not be relied on as a substitute for extensive independent research before making your investment decisions. Global Forex Trading is merely providing this column for your general information. The views of the author are not necessarily those of Global Forex Trading, its owners, officers, agents or employees. In addition, any projections or views of the market provided by the author may not prove to be accurate. Global Forex Trading and Cornelius Luca will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained in this column. Global Forex Trading and Cornelius Luca do not render investment, legal, accounting, tax, or other professional advice. If investment, legal, tax, or other expert assistance is required, the services of a competent professional should be sought.
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