Daily Market Commentary
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Rumors of an emergency Fed rate cut remained in place
Fri, Oct 26 2007, 06:52 GMT
by Cornelius Luca
The dollar had the kind of day I expected and suffered small losses across the board. Durable goods orders down fell surprisingly by 1.7% in September due to a decline in transportation orders, but then sales of new homes unexpectedly rose 4.8% in September. Rumors of an emergency Fed rate cut remained in place. Expect further choppy trading today with a negative bias on the dollar on Friday as well.
Euro/dollar
Euro/dollar advanced on Thursday but remained within Tuesday’s range. Expect choppy trading with a bullish bias. Strong resistance is now seen at 1.4355. Above it, strong resistance is seen at 1.4395 and then at 1.4430. Initial support is at 1.4250. Below 1.4170, euro/dollar has support at 1.4125 and at 1.4085. Next level is 1.3975. Distant support is at 1.3855.
Oscillators are mixed.
NEAR-TERM: Mixed with bullish bias
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/yen
Dollar/yen sank further on Thursday amid some sales in the yen crosses, but got stuck in an inside range. But this was mild; so sideways to lower trading is likely. Initial support is at 113.85. Below 113.25 there is strong support is at 112.90 from a 50-point pivot that targets 113.40 and 112.40. Immediate resistance is still in place at 114.60. Above 115.05 there still is strong resistance at 115.50 from another 50-point pivot, which targets 115.00 and 116.00.
Oscillators are mixed.
NEAR-TERM: Mixed to slightly bearish
MEDIUM-TERM: Slightly bullish
LONG-TERM: Mixed
Sterling/dollar
Sterling/dollar traded sideways on Thursday as expected and remained stuck in an inside range. Sideways trading is likely. Initial resistance remains in place at 2.0550. This is followed by 2.0600. Then there is a distant pivotal high at 2.0654. Immediate support is seen at 2.0435. Below 2.0395 the next levels are 2.0330 and 2.0260. Distant support is from a Fibonacci retracement level at 2.0135.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/Swiss franc
Dollar/Swiss closed fell on Thursday and remained in an inside range. The immediate bias is mixed to slightly negative. Immediate support remains at 1.1635. Below 1.1600, there is distant support at 1.1495. Initial resistance is at 1.1715. The next level is 1.1765. This is followed by 1.1812 from a Fibonacci retracement level. Above this level, distant resistance is at 1.1894.
Oscillators are mixed.
NEAR-TERM: Mixed to slightly bearish
MEDIUM-TERM: Mixed
LONG-TERM: Bearish
Published on Fri, Oct 26 2007, 06:50 GMT
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