214077 Resource 128469 128655 128655 1223522981566 1223522981566 Controlled GFT Daily Market Commentary

Forex Market Commentary for October 9, 2008 by Cornelius Luca

GFT Daily Market Commentary The major currencies had a divergent behavior on Wednesday in the wake of unprecedented concerted rate cuts made by six major central banks led by the Fed. Sterling/yen fell sharply, while the euro was supported by good local data. The dollar should recover against the yen and decline versus the European currencies. Euro/dollar The euro/dollar confirmed a bullish reversal and should struggle higher today, despite the ECB rate cut. In the medium term, the pair remains near the bottom of a declining channel support.  Resistance comes at 1.3750. Above 1.3775, the euro/dollar retains resistance at 1.3857. Distant resistance follows at 1.3980.Immediate support is at 1.3620. The next level is 1.3443. Distant support looms at 1.3350.   Oscillators are mixed. NEAR-TERM: Slightly bullish MEDIUM-TERM: Bearish LONG-TERM: BearishDollar/yen Dollar/yen collapsed to below parity on Wednesday, but recouped in early trading on Thursday. It remains below the neckline of an irregular head-and-shoulders pattern. The upside is favored today.Immediate resistance is at 101.25 from a 50-point pivot, which targets 100.75 and 101.75. The next level comes at 102.30 from a 50-point pivot, which targets 101.80 and 102.80.  Initial support comes from another 50-point pivot at 100.25, which targets 99.75 and 100.75. Distant support is at 99.25 from another 50-point pivot, which targets 98.75 and 99.75.Oscillators are sliding. NEAR-TERM: Slightly bullish  MEDIUM-TERM: Bearish LONG-TERM: MixedSterling/dollar Sterling/dollar sank to a new low for the downtrend on Wednesday. The sell-off should run out of steam, as the BoE has already cut rates. Immediate support is seen at 1.7173.  Below 1.7110, the next support follows at 1.7050. Initial resistance looms at 1.7405. The next levels are 1.7500 and 1.7650. Above 1.7838, distant resistance is at 1.8000.   Oscillators are mixed. NEAR-TERM: Mixed with upside risk MEDIUM-TERM: Bearish LONG-TERM: BearishDollar/Swiss franc Dollar/Swiss franc made a bearish reversal on Wednesday, as it hit a one-week low. The downside is favored in the short term.Immediate support is at 1.1210. Below 1.1140, support is seen at 1.1085. Good support follows at 1.097.   Initial resistance is at 1.1325. Above 1.1390, distant resistance comes at 1.1490Oscillators are declining.   NEAR-TERM: Slightly bearish  MEDIUM-TERM: Bullish LONG-TERM: Bullish 10 application/xml false currency Forex FX Mozilla/4.0 (compatible; MSIE 7.0; Windows NT 5.1; Q312461; .NET CLR 1.1.4322; InfoPath.1; .NET CLR 2.0.50727) 127.0.0.1 127.0.0.1 luca 69.118.109.245 false true false false true 128469 blog blogsite/GFTForex/web