Following is a selection of comments from analysts on important technical developments in the foreign exchange market:
EURO/DOLLAR: "has already done damage by breaking $1.2860. This suggests re-testing the $1.2830 low of the week. Today's sharp fall nullifies thoughts of a larger corrective rise above $1.3000 next week...Expect short term "selling on rallies" towards $1.2885/$1.2900/15 heading into Monday followed by a break of $1.2830/1.2766."
(The euro/dollar is) "nearing 3 key levels with bearish medium term and long term implications we're very likely to see a bearish weekly close today below the three-year uptrend at $1.2900 and perhaps the 200-day moving average at $1.2848. A sub-$1.2900 weekly close today would next eye testing 3 key medium term support levels: $1.2830, $1.2766 (April 14 low)."
But $1.2730 is the key level. Breaking $1.2730 would damage the long term outlook via weakening the weekly swing chart, creating the most prominent secondary high ($1.3480), in turn increasing the probability that euro/dollar is in a bear market."
EURO/DOLLAR: "The plunge continues, recently knocking out the $1.2825 low. That's further confirmation we're in a decline from $1.2989. The door is now wide open to $1.2766 and then $1.2729.
"Looking ahead, the next support targets will be $1.2690 to $1.2627 (61.8 percent of $1.1984-$1.3667), and then $1.2486 (61.8 percent of $1.1756-$1.2486).
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