Daily Market Commentary
This report has been deactivated
0
0
The dollar drifted aimlessly during the Memorial Day weekend
Tue, May 27 2008, 06:19 GMT
by Cornelius Luca
The dollar drifted aimlessly during the Memorial Day weekend. Trading should return to normal today, but probably slowly. Expect an attempt to recover before the dollar turns lower.
Euro/dollar
The euro/dollar closed virtually unchanged on Friday and Monday, so the positive outlook remains in place. The interim inversed head-and-shoulders remains in place and my model remains long. Following some profit taking, the upmove should resume. Initial resistance is seen at 1.5811. Above 1.5865, euro/dollar has distant resistance at 1.6020. Immediate support remains at 1.5726. The next level remains at 1.5685. This is followed by 1.5460.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Mixed to slightly bullish
LONG-TERM: Bullish
Dollar/yen
Dollar/yen is alternating up and down days, and Friday was a down day and Monday a non-existing day. The pair remains stuck in an inside range, so expect consolidation today. My model remains short. Key support is at 103.40 from a 50-point pivot, which targets 102.90 and 103.90. A bid support is seen at 102.30 from another 50-point pivot, which targets 101.80 and 102.80. Immediate resistance is now at 103.90. Strong resistance follows at 104.50 from a 50-point pivot, which targets 104.00 and 105.00.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bearish
Sterling/dollar
Sterling/dollar struggled higher on Monday but remained in an inside range. My model remains long and the interim inversed head-and-shoulders pattern is still in good shape. Initial resistance remains at 1.9850. Above it, there is further resistance at 1.9910. Distant resistance is at 2.0030. Immediate support is at 1.9760. This is followed by 1.9645. Only a break below 1.9545 would jeopardize the cable’s recovery.
Oscillators are rising.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Mixed
Dollar/Swiss franc
Dollar/Swiss sank to a one-month low of Friday and then remained near the bottom of the range on Monday. This weakness bodes well for my short model. The immediate outlook is bearish after forming a double top that targets 1.0130. Immediate support remains at 1.0200. This is followed by 1.0130 and 1.0105. Distant support is now pegged at .9877. Initial resistance comes at 1.0295. The next level is perched at 1.0352. If 1.0390 gives way, expect a test of the distant resistance at .1.0623.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Slightly bullish
LONG-TERM: Bearish
Published on Tue, May 27 2008, 06:21 GMT
Archive
- US Dollar: FOMC Over, Now What?
Published On Thu, Jan 29 2009, 02:42 GMT - New Zealand Cuts Interest Rates by 150bp to 3.5%
Published On Thu, Jan 29 2009, 02:40 GMT - FOMC Instant Insight: Fed Announcement Triggers Dollar Rally
Published On Wed, Jan 28 2009, 23:20 GMT - Currencies Rally on Obama's Plan to Save Banks
Published On Wed, Jan 28 2009, 23:17 GMT - US Dollar: Acts of Desperation?
Published On Wed, Jan 28 2009, 02:56 GMT
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!
GET CASH BACK FOR YOUR TRADES! Learn more about the Pip Rebate Program
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 trade 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.
Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.
Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
©2009 "FXstreet.com. The Forex Market" All Rights Reserved.