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The dollar has a down day on Friday versus the European currencies
Mon, Jun 2 2008, 06:07 GMT
by Cornelius Luca
The dollar has a down day on Friday versus the European currencies, but only consolidated against the independent yen. I don’t expect the start of a new direction on the first day of June, so consolidation should prevail.
Euro/dollar
Euro/dollar held above the support of the 60-day moving average at 1.5518 and rallied on Friday. The upmove failed to trigger a bullish reversal, so consolidation should rule today. Immediate support now comes at 1.5495 and 1.5460. below 1.5415, distant support is seen at 1.5287 from a pivot low. Again, it's unlikley to dip that low. The resistance at 1.5570 may hold on the day. If it doesn't, then look for a rally to as high as 1.5650. Distant resistance is perched at 1.5817.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Mixed to slightly bullish
LONG-TERM: Bullish
Dollar/yen
Dollar/yen incurred choppy trading around the poivot at 105.60 but closed virtually unchanged. Expect more consolidation here. Initial support is pegged at 105.18. Below 104.60 there is distant support at 103.60. Don't expect to see it though. Immediate resistance is at 105.60 from a 50-point pivot that targets 105.10 and 106.10. The next resistance remains at 106.30. A further spike up to 106.85 is unlikley today.
Oscillators are rising.
NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bearish
Sterling/dollar
By Friday, sterling/dollar has been alternating up and down days for seven days. If this silly pattern continues, then Monday should be a down day. Support is first seen at 1.9770. Below 1.9685, cable retains support at 1.9615. Initial resistance is at 1.9850. Above it, there is further resistance at 1.9880, 1.9910 and 1.9935. Distant resistance follows at 2.0005.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Bearish
LONG-TERM: Mixed
Dollar/Swiss franc
Dollar/Swiss fell on Friday after three consecutive days of gains after failing to surpass the 100-day moving average. Monday should see only consolidation. Immediate support is seen at 1.0395. Below 1.0375 there is support at 1.0310. Distant support follows at 1.0215. Initial resistance is pegged at 1.0460. A break above 1.0533 would signal a spike up to 1.0622, but this unlikely today.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Slightly bullish
LONG-TERM: Bearish
Published on Mon, Jun 2 2008, 06:12 GMT
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