Selection of comments from analysts on important technical developments in the foreign exchange market:
EURO/DOLLAR: "The current Sunday night decline may be nearing an end. The 1.2050/40 dollars support was the favoured place to complete this week's selloff, but this morning's deeper fall now appears extending testing support from the 1.2025 dollars hourly low (June 15). A rise above 1.2072 dollars resistance would be the first sign of strength, with a rise above 1.2100 dollars resistance needed to confirm that the week's decline is over, and a rebound multi-day underway."
DOLLAR/YEN: "Tuesday's break of 108.50 yen has obviously not sparked a sustained selloff given the subsequent rebound above 109 yen. Instead this finds dollar/yen meandering between 108.40-109.15 yen."
STERLING/DOLLAR: "Cable is now sitting essentially in the middle of the week's range so far and support can be expected to emerge at around 1.8100-05 dollars then 1.8050 dollars. On the topside, look for resistance at yesterday's high of 1.8235 dollars, then on towards 1.8320 dollars, close to the weekly high."
EURO/DOLLAR: Against the common currency, the dollar continues to gain ground. There's still concern as to just where the European Union goes next, with budgetary and constitutional issues looming and although we've seen some upside in earlier trade after the move below the key 1.20 dollars level, in the absence of improved economic data the downside remains exposed.
Look for support at 1.2000 dollars, 1.1980 dollars and 1.1950 dollars, whilst resistance should appear at 1.2120 dollars, 1.2150 dollars and 1.2200 dollars.
Currency bid prices at 10:42 am EDT (1442 GMT). All data taken from Reuters calculated from the levels at 4:30 pm (2030 GMT) in the previous New York session.
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