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Following is a selection of comments from analysts on important technical developments in the foreign exchange market.
STERLING/DOLLAR: Cable "is under pressure by a strong euro/sterling and has broken the 1.7600 level overnight though we are now back again. The next downside target is 1.7470. The upside seem well protected at 1.7650/60 and 1.7700 level."
DOLLAR/YEN: Dollar/yen "keep pushing for the upside 113.50 resistance level but meeting plenty of sell interests. We still consider the 113.50/70 level a major top for now, and prefer to focus on the chances for the pair testing lower levels. Targets are 112.50 and 112 level."
DOLLAR/YEN: "The dollar/yen chart... shows the dollar to have largely peaked at its 113.49 high, falling short of the rising channel resistance neat 113.70. The upside barriers are increasingly accumulating at 114.51-38 percent retracement of the 135.39-101.59 decline, and the 200-week moving average at 115.13. We expect dollar/yen to test the 112.20 preliminary support early next week before attempting to regain the 113.30-40. Medium term consolidation seen following at 111.00-112.20 in most of October, until further clarity is obtained from the Bank of Japan and the Fed."
STERLING/DOLLAR: "Low of 1.7565 just missed the 76.4 percent pullback by 5 pips (1.7560) Still a bit away but if it closes above 1.7705 today it would be a bullish key day reversal off the 76.4 percent pullback which is exactly what happened on Aussie/dollar 0.7457 before the rally to 0.7769 Failure to get that close should restrict the rally to 1.7790-1.7820"
DOLLAR/CANADIAN DOLLAR: "1.1669 is the 76.4 percent pullback of the last bounce. Low so far is 1.1671" Currency bid prices at 13:03 GMT. All data taken from Reuters calculated from the levels at 4:30 pm (20:30 GMT) in the previous New York session.

Copyright Reuters, 2005

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