Daily Forex Market Commentary

Daily Forex Technicals |  Written by Global Forex Trading |  Sep 10 08 03:18 GMT |

Despite the massive sell-off in the US equity indices, oil & co. and carry trades, the European currencies ended little changed on Tuesday, after giving up early gains. Only dollar/yen tumbled to close at the lowest level since July 21. Depending on the news on Lehman, the catalyst of the equity slide, the dollar should see the same pattern on Wednesday as well. The outlook remains positive on dollar/Europe and slightly bearish in dollar/yen. No US reports are due on Wednesday. Euro/dollar Euro/dollar consolidated and closed virtually unchanged after cutting a new low for the downtrend on Tuesday. My model remains short. The immediate outlook is only marginally positive, while the medium-term outlook is negative. Initial resistance remains at 1.4157. The next cap is between 1.4197 and 1.4207. If this strong area gives way, the pair is in for an aggressive recovery toward 1.4295. Distant resistance is at 1.4390 Immediate support is at 1.4047. Below 1.3835, distant support is at 1.3695. Oscillators are declining. NEAR-TERM: Mixed to slightly bullish MEDIUM-TERM: Bearish LONG-TERM: Mixed Dollar/yen Dollar/yen fell sharply amid a new wave of sales of yen crosses. Following a brief recovery, the sell-off should resume. My model remains short. Above 107.22, resistance is at 107.95 from a 50-point pivot, which targets 107.45 and 108.45. Above 108.70, resistance remains at 109.15 from another 50-point pivot, which targets 109.65 and 108.65. Distant resistance is at 110.35 from a 50-point pivot, which targets 109.85 and 110.85. Initial support is at 106.75 from a 50-point pivot, which targets 106.25 and 107.25. A pivot low is at 105.53. Oscillators are declining. NEAR-TERM: Mixed MEDIUM-TERM: Bearish  LONG-TERM: Mixed Sterling/dollar Sterling/dollar consolidated in an inside range on Tuesday after failing to mount a recovery in New York. My model remains short. The medium term is bearish, but the short-term outlook remains mixed. Initial resistance is at 1.7706. This is followed by 1.7737 from a Fibonacci retracement level. Above the strong pivot at 1.7975, distant resistance remains at 1.8100. Immediate support is at 1.7505. Below the pivot low at 1.7471, distant support remains at 1.7315. Oscillators are falling. NEAR-TERM: Mixed MEDIUM-TERM: Bearish  LONG-TERM: Bearish Dollar/Swiss franc Dollar/Swiss slipped in an inside range on Tuesday after reaching the highest level since the end of last year a day before. My model remains long. Following some corrective decline, the uptrend should resume. Immediate support is at 1.1214. This is followed by 1.1140. Distant support is at 1.1100. Initial resistance remains at 1.1371. Above 1.1466, a pivot high remains at 1.1605. Oscillators are rising. NEAR-TERM: Mixed  MEDIUM-TERM: Bullish  LONG-TERM: Bullish 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.