Daily Market Commentary
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The dollar was all over the place on Tuesday
Wed, Jul 2 2008, 06:08 GMT
by Cornelius Luca
The dollar was all over the place on Tuesday, but when the dust settled, it made little progress. Expect further choppy trading today as well.
Euro/dollar
The euro/dollar closed slightly higher on Tuesday, as the market lacks direction. I don’t expect much clarity today either, but with the European Central Bank expected to hike rates on Thursday, the bias should be on the upside. Immediate resistance is at 1.5842. Above 1.5930, euro/dollar sees additional resistance at 1.6020. Initial support is at 1.5760. The next levels are 1.5720 and 1.5685. Below 1.5630, further support remains at 1.5575.
Oscillators are mixed.
NEAR-TERM: Mixed with upside bias
MEDIUM-TERM: Bullish
LONG-TERM: Bullish
Dollar/yen
Dollar/yen consolidated in an inside range to close flat on Tuesday as well, but my model remains short. Expect more of the same. Above 106.45, strong resistance remains at 106.75 from another 50-point pivot, which targets 106.25 and 107.25. Distant resistance now comes at 107.95 from a 50-point pivot, which targets 107.45 and 108.45. Initial support remains at 105.60 from a 50-point pivot that targets 105.10 and 106.10. Distant support is at 104.50 from another 50-point pivot, which targets 104.00 and 105.00.
Oscillators are falling.
NEAR-TERM: Mixed
MEDIUM-TERM: Mixed
LONG-TERM: Mixed
Sterling/dollar
Sterling/dollar rallied to a 2 1/2-month high on Tuesday, but didn’t make any progress. My model remains long, but choppy trading should persist. Initial resistance remains at 1.9970. The next level is 2.0010. Above 2.0040, further resistance comes at 2.0145. Immediate support is still seen at 1.9885. The next level is 1.9800. This is followed by 1.9710.
Oscillators are mixed.
NEAR-TERM: Mixed with downside bias
MEDIUM-TERM: Mixed
LONG-TERM: Mixed
Dollar/Swiss franc
Dollar/Swiss traded sideways to close unchanged on Tuesday. We need fresh factors before getting out of this rut. Initial resistance remains at 1.0230. Above 1.0295, resistance is at 1.0345 and 1.0390. This is followed by 1.0540. Immediate support is at 1.0155. Below 1.0075, support is still seen at .9996.
Oscillators are mixed.
NEAR-TERM: Mixed
MEDIUM-TERM: Mixed
LONG-TERM: Bullish
Published on Wed, Jul 2 2008, 06:11 GMT
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