Wednesday August 22, 2007 - 12:53:42 GMT
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Daily Forex Market Commentary for Wednesday, August 22, 2007
Wednesday, August 22, 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 enjoyed the second day of uneasy calm on Tuesday, even though an unnamed UK bank had to use funds at a penalty rate from the Bank of England. Most financial markets are now starting to digest the calamity of the subprime debacle and more hiccups are to be expected. Once again, probably the better strategy to follow take is selling of the yen crosses.
The euro/dollar remained glued to a secondary Fibonacci retracement level at 1.3475 on Monday and was still 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.
As expected, dollar/yenâ€™s recovery on Monday didnâ€™t last long, as the pair fell on the day. 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.
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.
Above 114.90, strong resistance is at 115.50 from another 50-point pivot, which targets 115.00 and 116.00.
Oscillators are declining.
Sterling/dollar slipped on Tuesday but remained stuck within Fridayâ€™s wide range. The pair should consolidate further today.
Immediate support is at \1.9750. A break below the pivotal level at 1.9653 would signal a further slide to 1.9550.
Strong resistance is at 1.9900. Strong resistance follows at 1.9937. It is very unlikely that the resistance at 2.0015 will gives way.
Oscillators are mixed.
Dollar/Swiss franc marked more time and closed virtually unchanged on Tuesday. Expect further consolidation.
Initial resistance is still seen at 1.2100. The next level is .2140. Above 1.2219, distant resistance is at 1.2310.
Immediate support is at 1.2017. The next level looms at 1.1970. Below 1.1870, distant support is seen at 1.1819.
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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