Following is a selection of comments from analysts on important technical developments in the foreign exchange market:
EUR/USD: "Euro's corrective sell-off is greater than expected but should reverse around 1.2700 to yield resumption of uptrend to 1.3000+."
USD/JPY: "Whilst now finding Support at 115.20/1500 dollar is expected to extend recovery onto the low/mid 116.00's before RVSL - 114.00."
EUR/USD: "Dollar strength has pushed EUR/USD below the trendline from the $1.2456 low that we have focused on in recent days. However, the decline still looks corrective. The decline from $1.2971 to $1.2456 is in 3 waves which means that the rally from $1.2456 to $1.2908 could be the first leg of a larger 5 wave bullish sequence. A short term double bottom and bullish divergence with RSI on the hourly just above the 38.2 percent fibo of $1.2456-$1.2908 at $1.2736 gives scope to gains going forward.
USD/JPY: "has broken above its resisting trendline from the 117.88 yen high is currently testing the 50 percent fibo of 117.88-113.95 at 115.92. RSI on the hourly is in overbought territory. The larger correction still takes the form of a diagonal triangle - which could end in a thrust higher to resistance before a bigger turn lower. Resistance is at the 61.8 percent fibo of 117.88-113.95 at 116.38 as well as the June 27 high at 116.67. A rally to this zone would also form a symmetrical head and shoulders pattern."
USD/THB: "Having finally managed to breach this year's low of 37.44, which was set on 1st May, USD/THB is in the process of testing three-year trend-line support off the 13th October 2003 low of 38.97 the outlook remains bearish. There are two key Fibonacci charts to focus on In sum, a confirmed break of the major trend-line support at 37.20 targets significant downside extension to the 35.28-51 area."
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