Forex Market Commentary for November 13, 2007 by Cornelius LucaGFT Daily Market Commentary

The dollar surged versus the commodity and the European currencies while sinking against the yen amid massive liquidation of the carry Trade. The slide was exacerbated by thin trading conditions. Following a brief bounce, the carry trades should decline further.

Euro/dollar

Euro/dollar sank sharply on Monday, as expected. The selloff should continue after an initial recovery.

Immediate resistance is at 1.4565. Above 1.4615, resistance is now seen at 1.4751.

Initial support is at 1.4520. This is followed by 1.4470. Below 1.4415, euro/dollar has distant support comes at 1.4290.

Oscillators are mixed.

NEAR-TERM: Mixed
MEDIUM-TERM: Bullish
LONG-TERM: Bullish

Dollar/yen

Dollar/yen plunged to a new low on Monday on a further meltdown in carry trades. Expect more weakness after an initial recovery. The bearish flag triggered on Wednesday already reached the target of 110.05. And my 12-year old Gann level at 109.15 held like a charm! I hope you enjoyed it. Following a brief bounce, the slide should resume.
Immediate resistance is at 110.35 from a 50-point pivot that targets 109.85 and 110.85.
Initial support now comes at 109.15 from another 50-point pivot that targets 109.65 and 108.65.
Oscillators are falling.

NEAR-TERM: Mixed to slightly bearish
MEDIUM-TERM: Bearish
LONG-TERM: Mixed

Sterling/dollar

Sterling/dollar plummeted on Monday after plunging from a new 26-year high a day earlier. The downside remains favored here, but not before a corrective bounce.
Initial resistance is at 2.0635. This is followed by 2.0665. Further resistances are at 2.0775 and 2.0880.
Immediate support is now seen at 2.0520. Next level is at 2.0410. Distant support is at 2.0300
Oscillators are falling.

NEAR-TERM: Mixed
MEDIUM-TERM: Mixed
LONG-TERM: Bullish

Dollar/Swiss franc

Dollar/Swiss rallied on Monday and made a bullish reversal formation after coining a new low for the downtrend a day earlier. The oversold currency should recover further today.

Initial resistance is at 1.1335. Above 1.1400, there is resistance at 1.1530.
Immediate support is at 1.1250. Below 1.1189, support is now pegged at 1.1100. Distant support is at 1.0980.

Oscillators are falling.

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