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Daily Market Commentary
The dollar encountered the choppy trading
Thu, Mar 27 2008, 07:42 GMT
by Cornelius Luca
The dollar encountered the choppy trading I expected and closed lower on Wednesday amid another wave of weak US data and decent European economic reports. The downtrend resumed, but expect further choppy trading today.
Euro/dollar
Euro/dollar rallied further on Wednesday and this is good, as my model remains long. Expect another choppy attempt to pad its gains. Initial resistance is at 1.5904 from a pivot high. The next level is 1.5970. Distant resistance now comes at 1.6160. Immediate support is seen at 1.5745. Below 1.5655, there is distant support at 1.5480.
Oscillators are rising.
NEAR-TERM: Slightly bullish
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/yen
Dollar/yen was all over the place on Wednesday, but then closed lower. My model is long, but I remain square here because the risk is big on the downside. Choppy to lower trading is likely today. Initial support is still seen at 99.65. Below 99.00, distant support is at 98.46. Immediate resistance remains at 100.25 from a 50-point pivot, which targets 99.75 and 100.75. This is followed by 101.25. The next level is seen at 101.90.
Oscillators are declining.
NEAR-TERM: Mixed with bearish bias
MEDIUM-TERM: Mixed to slightly bullish
LONG-TERM: Bearish
Sterling/dollar
Sterling/dollar managed to reverse sharp early losses and my model remains long. I expect a choppy upmove today. Initial resistance now comes at 2.0145. A break above 2.0205 would signal another further rally to the peak at 2.0397. Immediate support is still seen at 2.0005. Below 1.9955, the next level follows at 1. 9880. There is a pivot low at 1.9738.
Oscillators are mixed.
NEAR-TERM: Slightly bullish
MEDIUM-TERM: Bullish
LONG-TERM: Mixed
Dollar/Swiss franc
Dollar/Swiss sank further on Wednesday and this weakness forced my model to get short. That’s a good idea because mixed to lower trading is likely. Immediate support is seen at 0.9790. Below 0.9642, distant support is now pegged at 0.9500. Initial resistance is seen at 0.9985. The next level is 1.0115. Further resistance is at 1.0200.
Oscillators are declining.
NEAR-TERM: Mixed to slightly bearish
MEDIUM-TERM: Bearish
LONG-TERM: Bearish
Published on Thu, Mar 27 2008, 07:44 GMT
Archive
- The dollar fell further on Monday versus the euro and the pound
Published On Tue, May 13 2008, 06:07 GMT - The dollar fell across the board on Friday
Published On Mon, May 12 2008, 06:39 GMT - The dollar rallied versus the European currencies but sank versus the yen
Published On Fri, May 9 2008, 06:17 GMT - The dollar rallied on Wednesday versus the European currencies
Published On Thu, May 8 2008, 06:42 GMT - The dollar encountered very choppy reading on Tuesday
Published On Wed, May 7 2008, 06:25 GMT
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