The market is looking for a dip to buy dollars again
The market is looking for a dip to buy dollars again after missing the big rally on July 22. The US currency rallied on Friday for this reason, but the sell-off in oil and the rally in stocks on rumors that Lehman will be bought underpinned. The immediate risk is on the upside and the only US economic report is existing home sales.
Euro/dollar Euro/dollar gave back most of the gains made on Thursday. My model is long, but the immediate risk is on the downside.
Initial support is now seen at 1.4700. The next level is 1.4631.
Immediate resistance comes at 1.4800. This is followed by 1.4845, 1.4902 and 1.4950.
Oscillators are falling.
NEAR-TERM: Mixed with downside risk MEDIUM-TERM: Bearish LONG-TERM: Mixed
Dollar/yen Dollar/yen reversed aggressively all of the losses made a day earlier. My model is barely short. The initial risk is barely on the upside now.
Immediate resistance remains at 110.35 from a 50-point pivot, which targets 109.85 and 110.85. Distant resistance is 111.60 from another 50-point pivot, which targets 112.10 and 111.10.
Support remains at 109.85. Further strong support is at 109.15 from a 50-point pivot, which targets 109.65 and 108.65.
Dollar/Swiss franc Dollar/Swiss franc reversed Thursday's sharp losses while alternating up and down days and my model is barely short here. The immediate risk is now on the upside while the market is trying to make up its mind.
Immediate resistance is at 1.1040. Above it, key resistance remains at 1.1185.
Initial support is pegged at 1.0910. Below 1.0855, support remains at 1.0725.
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