Forex Market Commentary for December 24, 2007 by Cornelius Luca GFT Daily Market Commentary The dollar is flat versus the European currencies and the yen on Christmas Eve and struggling higher against the antipodean currencies. Expect only spotty trading through Thursday. Euro/dollar Euro/dollar recovered on Friday after falling to a near two-month low a day earlier. Trading should be quiet. Initial resistance is seen at 1.4455. Above it the next levels are 1.4490 and 1.4525. Immediate support is at 1.4330. A break below 1.4290 would suggest a test of 1.4260. Euro/dollar then has good support at 1.4165. Oscillators are mixed. NEAR-TERM: Mixed MEDIUM-TERM: Mixed LONG-TERM: Bullish Dollar/yen Dollar/yen broke out of an inside range on Friday on its way to a 1 ½-month high. Expect choppy trading today. Immediate resistance is 114.20. The next level is 115.00. Initial support now comes at 113.60. Strong support follows from a 50-point pivot at 112.90, which targets 113.40 and 112.40. Oscillators are rising. NEAR-TERM: Mixed MEDIUM-TERM: Bullish LONG-TERM: Bearish Sterling/dollar Sterling/dollar remains under pressure after collapsing to a four-month low on Thursday. The downside remains favored in the medium-term and there is a medium-term bearish flag that targets 1.9650. Immediate support is still seen at 1.9760. This is followed by 1.9680 and 1.9650. Initial resistance is at 1.9865. The next one is at 1.9960. Distant resistance now follows at 2.0055. Oscillators are declining. NEAR-TERM: Slightly bearish MEDIUM-TERM: Bearish LONG-TERM: Bullish Dollar/Swiss franc Dollar/Swiss fell from a near two-month high on Friday but then recovered most of its losses. Its uptrend still looks good but a close above the 1.1610 area is needed to signal further strength. Initial resistance remains at 1.1610. Above it, resistance comes at 1.1710 and 1.1750. Immediate support is now seen at 1.1530. This is followed by 1.1480. The next level is 1.1450. Oscillators are rising. NEAR-TERM: Mixed MEDIUM-TERM: Bearish LONG-TERM: Bearish