Daily Forex Market Commentary

Daily Forex Technicals | Written by GFT | Oct 21 08 01:42 GMT |

With the stocks up on Monday and Federal Reserve Chairman Bernanke endorsed an additional fiscal stimulus, the dollar climbed up on Monday. But volume remained lighter than usual. The dollar should attempt to pad its gains today, but the upside is limited. Euro/dollar The euro/dollar fell and closed at the lowest level of the downtrend on Monday. My model remains short as the pair is trying to break out of a triangle. The medium-term outlook remains bearish, but in the short term the downside should be within reach. Immediate support comes from two pivot lows at 1.3289 and 1.3261. Below 1.3190, support remains at 1.3040 Initial resistance moved down to 1.3390. This is followed by 1.3530 and 1.3615. Oscillators are mixed. NEAR-TERM: Mixed to slightly bearish MEDIUM-TERM: Bearish LONG-TERM: Bearish Dollar/yen Dollar/yen struggled higher on Monday and my model remains long. Choppy trading will persists, and the initial bias is still up. The medium-term outlook remains bearish. Resistance remains at 102.30 from a 50-point pivot, which targets 101.80 and 102.80. A pivot high lies at 103.06 Immediate support comes at 101.25 from another 50-point pivot, which targets 100.75 and 101.75. The next level is 100.25 from a 50-point pivot, which targets 99.75 and 100.75. Oscillators are mixed. NEAR-TERM: Slightly bullish MEDIUM-TERM: Bearish LONG-TERM: Mixed Sterling/dollar Sterling/dollar reversed early gains and my model remains short. The downside is favored only slightly, and the medium-term outlook remains bearish. Immediate support is now seen at 1.7105. The next level is 1.6965. Distant support is at 1.6790 Initial resistance is at 1.7230. The next resistance follows at 1.7425. Above 1.7515, distant resistance remains at 1.7630. Oscillators are mixed. NEAR-TERM: Slightly bearish MEDIUM-TERM: Mixed LONG-TERM: Bearish Dollar/Swiss franc Dollar/Swiss powered to a new high for the uptrend and my model went long early Monday. The medium-term risk remains on the upside. Initial resistance remains at 1.1540. The next levels are 1.1573, 1.1650 and 1.1755. Immediate support is now seen at 1.1425. The next level is 1.1325. Below 1.1240, support remains at 1.1055. Oscillators are rising. NEAR-TERM: Slightly bullish MEDIUM-TERM: Bullish LONG-TERM: Bullish Cornelius Luca Global Forex Trading http://www.gftforex.com DISCLAIMER: GFT refers to Global Futures & Forex, Ltd. and all of its divisions, branches and subsidiaries, including Global Forex Trading and GFT Global Markets UK Limited. GFT Global Markets UK Limited is authorized and regulated by the United Kingdom Financial Services Authority. Each investment product is offered only to and from jurisdictions where solicitation and sale are lawful. Trading of foreign exchange contracts, contracts for differences, derivatives and other investment products which are leveraged, can carry a high level of risk, and may not be suitable for all investors. It is possible to lose more than the initial investment. In Australia, GFT means Global Futures & Forex, Ltd. ARBN 103 508 461, AFS Licence 226625. A Product Disclosure Statement (PDS) is available at www.gft.com.au. You should read and consider the PDS before making any decision to deal in GFT products. © 2008 Global Futures & Forex, Ltd. All rights reserved.