GFT Daily Market Commentary
Forex Market Commentary for November 5, 2007 by Cornelius LucaGFT Daily Market Commentary

The dollar fell across the board on Friday despite an exceptional, if unsustainably strong, non-farm payrolls report. The dollar is out of control, so stay short with a tight stop. However, it should first enjoy a temporary reprieve.

Euro/dollar

Euro/dollar rallied on Friday to reach yet a new lifetime high. The pair is very overbought, but stay with it until there is some proof it will go down.

Immediate resistance is seen at 1.4533. Above it, strong resistance is seen at 1.4580. Next resistance is at 1.4665. Distant

Immediate support is at 1.4455. Below 1.4405, euro/dollar still has support at 1.4315. Only a break below 1.4195 would signal a more sustained decline.

Oscillators are rising.

NEAR-TERM: Mixed to slightly higher
MEDIUM-TERM: Bullish
LONG-TERM: Bullish

Dollar/yen

Dollar/yen fell to a three-day low but made little progress. Expect mixed trading to persist.

Initial support comes at 114.20 from a 50-point pivot that targets 113.70 and 114.70. Below 113.20, strong support is at 112.90 from a 50-point pivot that targets 113.40 and 112.40. There is a distant pivot low at 111.60 which is also a 50-point pivot, which targets 112.10 and 111.10.
Above 115.05 there is strong resistance at 115.50 from another 50-point pivot, which targets 115.00 and 116.00.

Oscillators are mixed.

NEAR-TERM: Mixed
MEDIUM-TERM: Slightly bullish
LONG-TERM: Mixed

Sterling/dollar

Sterling/dollar exploded on Friday to a 26 ½-year high of 2.0573. The pair is severely overbought, but hold long positions with a tight stop.

Initial resistance is at 2.0915. The next level is 2.1025.

Immediate support is seen at 2.0840. Next level is at 2.0755.
Oscillators are rising.

NEAR-TERM: Mixed to slightly higher
MEDIUM-TERM: Bullish
LONG-TERM: Bullish

Dollar/Swiss franc

Dollar/Swiss closed the week down after sinking to another over 2 ½-year low of 1.1493. Hold short positions in this oversold pair until there is a confirmed bottom.

Below 1.1493, support is at 1.1455. Below 1.1410, there is support at 1.1365.

Initial resistance is at 1.1590. Above 1.1655, there is resistance at 1.1740.

Oscillators are falling.

NEAR-TERM: Mixed with more downside risk
MEDIUM-TERM: Mixed
LONG-TERM: Bearish