Daily Forex Market Commentary

Daily Forex Technicals | Written by Global Forex Trading | Jul 30 08 04:34 GMT |

The dollar surged on Tuesday amid lower oil prices and a seemingly decent US consumer confidence report. The stock markets did well enough on Tuesday to reverse Monday's losses. Again, it's summer time and trading should remain choppy. But with the dollar threatening channel lines supports in euro and pound and above the trendline against the franc, after early weakness the bias should be higher. Euro/dollar Euro/dollar collapsed to a five-week low, and my model remains short. The medium-term outlook is bearish again. Initial support comes from the channel line 1.5560. Below the 1.5629 pivot low, strong support follows at 1.5585. The next good level is at 1.5550. Immediate resistance is seen at 1.5630. The next resistance is 1.5770 from a Fibonacci retracement level. The next levels remain 1.5790, 1.5820, and 1.5860. These are followed by 1.5943. A pivot high remains at 1.6036. Oscillators are declining. NEAR-TERM: Slightly bearish MEDIUM-TERM: Slightly bearish LONG-TERM: Bullish Dollar/yen Dollar/yen is still alternating up and down days, but on Tuesday it surged to a five-week high. My model remains long and the short-term outlook is slightly bullish. Immediate resistance is at 108.45. Distant resistance is at 109.15. Support moved up to 107.95 from a 50-point pivot, which targets 107.45 and 108.45. Distant support follows at 106.75 from a 50-point pivot, which targets 106.25 and 107.25. Oscillators are rising. NEAR-TERM: Mixed to slightly bullish MEDIUM-TERM: Mixed to slightly bullish LONG-TERM: Mixed Sterling/dollar Sterling/dollar broke out of an inside range on the downside and my model is still short. It closed below the rising trendline and after initial strength the downside is favored. Initial resistance now comes at 1.9860. Above 1.9880, the next significant level is at 1.9970. There is a pivot high at 2.0075. Immediate and very strong support is now seen at 1.9763. This is followed by 1.9690. Distant support is still seen at 1.9650. Oscillators are falling. NEAR-TERM: Mixed to slightly bearish MEDIUM-TERM: Slightly bearish LONG-TERM: Bullish Dollar/Swiss franc Dollar/Swiss surged to a five-week high on Tuesday and closed above the trendline resistance. My model is long and the upside is favored. Immediate resistance is at 1.0512. Above 1.0545, resistance now comes at 1.0622. This is followed by 1.0790. Initial support is seen at 1.0400. Below 1.0370, support now comes at 1.0315. Distant support is pegged at 1.0200. Oscillators are rising. NEAR-TERM: Slightly bullish MEDIUM-TERM: Slightly bearish LONG-TERM: Mixed Cornelius Luca Global Forex Trading http://www.gftforex.com DISCLAIMER: 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.