Daily Market Commentary

The dollar rallied versus the European currencies but sank versus the yen

Fri, May 9 2008, 06:17 GMT
by Cornelius Luca

GFT (Global Forex Trading)


The dollar rallied versus the European currencies but sank versus the yen. The US currency should edge lower today, but the overall risk in on the upside.


Euro/dollar

Euro/dollar sank to a two-month low on Thursday before recovering to close flat. There is a risk of an intermediary bullish reversal (hammer) and Friday will be the day to happen. My model remains short and the medium-term outlook is bearish. Immediate support is now seen at 1.5360. The pair has a pivot low at 1.5287. Below 1.5200, euro/dollar would test support at 1.5115. Distant support is pegged at 1.5040. Initial resistance is now seen at 1.5455. The euro/dollar then retains additional resistance at 1.5515,1.5600 and 1.5685.

Oscillators are bearish.

NEAR-TERM: Mixed with upside risk
MEDIUM-TERM: Bearish
LONG-TERM: Bullish


Dollar/yen

Dollar/yen fell sharply while taking its cues from the 103.40 and 104.50. My model went short and this is OK unless 104.50 goes. Strong support is pegged at 103.40 from a 50-point pivot, which targets 102.90 and 103.90. Distant support is at 101.85. Immediate resistance moved to at 104.50 from a 50-point pivot, which targets 104.00 and 105.00. Strong resistance follows at 105.60 from a 50-point pivot that targets 105.10 and 106.10.

Oscillators are mixed.

NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bearish


Sterling/dollar

Sterling/dollar consolidated near a 2 ½-month low. My system remains short, but the short-term outlook is slightly bullish. Initial resistance still comes at 1.9585. Above 1.9690, there is distant resistance at 1.9840. Below 1.9495, support remains at 1.9410. This is followed by 1.9363. Distant support looms at 1.9185.

Oscillators are declining.

NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Mixed


Dollar/Swiss franc

Dollar/Swiss fell from an over two-month high to close lower on Thursday. My model is long and the medium-term outlook remains bullish. But the pair is overbought and the short-term outlook is slightly bearish. Immediate support is now seen at 1.0440. Below it, the pair has further support at 1.0375. Distant support is then pegged at 1.0255. Initial resistance now comes at 1.0545. This is followed by 1.0622. Distant resistance remains at 1.0795.

Oscillators are mixed.

NEAR-TERM: Mixed with downside risk
MEDIUM-TERM: Bullish
LONG-TERM: Bearish

Published on  Fri, May 9 2008, 06:18 GMT

Archive

Global Forex Trading Ltd  | 4760 East Fulton Road, Suite 201, Ada, Michigan, U.S.A
http://www.gftforex.com | info@gftforex.com

Legal disclaimer and risk disclosure

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.

Interested in forex trading? forex brokerage firms!


GFT
Contact the broker/FDM
Open a demo account
Interbank FX, LLC
Contact the broker/FDM
Open a demo account
FXA Securities Ltd ( MF Global Group)
Contact the broker/FDM
Open a demo account		C.I.M Banque
Contact the broker/FDM
Open a demo account		Alpari (UK) Limited
Contact the broker/FDM
Open a demo account

FXstreet.com will give you a 3 months membership as soon as minimum rebates have been generated (€150 for private trader/ €300 for corporate trader)

[Read Premium full description]


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management.

Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

©2008 "FXstreet.com. The Forex Market" All Rights Reserved.