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GFT Daily Market Commentary
Wednesday, October 22, 2008

by Cornelius Luca of Global Forex Trading

Forex Market Commentary for October 23, 2008 by Cornelius Luca

GFT Daily Market Commentary

As expected, the dollar rallied further on Wednesday, surging again versus the European currencies and the Canadian dollar and fall against the yen. The moves are overdone, but stay with them until you have proof of a pause.

Euro/dollar

The euro/dollar plunged to a new low for the strong downtrend and my model remains short. The medium-term outlook remains bearish

Immediate support is at 1.2705. Below 1.2580, support is now seen at 1.2505.

Initial resistance moved further down to 1.2830. This is followed by 1.2980. Distant resistance looms at 1.3060.

Oscillators are bearish.

NEAR-TERM: Slightly bearish
MEDIUM-TERM: Bearish
LONG-TERM: Bearish

Dollar/yen

Dollar/yen collapsed to a seven-month low on Wednesday and my model remains short. The medium-term outlook remains bearish.

Support now comes at 97.30 from another 50-point pivot, which targets 96.80 and 97.80.

Resistance now moved down to 98.25 from a 50-point pivot, which targets 97.75 and 98.75. This is followed by 99.25 from another 50-point pivot, which targets 98.75 and 99.75.

Oscillators are falling.

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

Sterling/dollar

Sterling/dollar sank further to a new five-year low and my model remains short. The downside is still favored, as the medium-term outlook remains bearish.

Immediate support is now seen at 1.6070. The next level is 1.5850. Distant support is at 1.5630.

Initial resistance is at 1.6345. The next resistance follows at 1.6540. Distant resistance is now pegged at 1.6790.

Oscillators are falling.

NEAR-TERM: Slightly bearish
MEDIUM-TERM: Bearish
LONG-TERM: Bearish

Dollar/Swiss franc

Dollar/Swiss climbed up to a new high for the uptrend and my model remains long. The medium-term risk remains on the upside.

Initial resistance remains at 1.1710. The next levels are 1.1755 and 1.1873.

Immediate support is still seen at 1.1595. The next level is 1.1410. Distant support comes at 1.1205.

Oscillators are rising.

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

Recent articles from this author

Euro Capped at 1.3000 as All Eyes on US - Monday, February 09, 2009
GFT Daily Market Commentary - Thursday, October 30, 2008
GFT Daily Market Commentary - Wednesday, October 29, 2008
GFT Daily Market Commentary - Tuesday, October 28, 2008
GFT Daily Market Commentary - Monday, October 27, 2008

About the author

In 2002, Luca joined Global Forex Trading, Division of Global Futures & Forex, Ltd., as one of its analysts who provides daily, weekly and monthly commentary on the major markets of foreign exchange. Luca is a world-renown author, teacher and authority in foreign exchange who has traded and analyzed currencies since 1983. His daily and weekly commentary on the major currencies can be read at http://www.gftforex.com/resources/commentary.asp?aid=576

As a qualified professor of finance, Luca has taught courses at the New York University, Pace University's Lubin School of Business Graduate Division in New York City and at the New York Institute of Finance's FT Knowledge. His published works include Trading in the Global Currencies Markets, which was published by Prentice Hall and is a comprehensive analysis of the foreign exchange markets, instruments, players and methods of forecasting.

Additional Luca works published by Prentice Hall include Technical Analysis Applications in the Global Currencies Markets, which is an in-depth and unique coverage of currency charting analysis. His most recent book, titled Technical Analysis Applications, will be published by McGraw-Hill in August 2004 Luca earned a master's degree in business in international business and finance from the New York University's Leonard Stern Graduate School of Business and a bachelor's degree in international marketing from the Bernard Baruch College, The City University of New York.

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