Following is a selection of comments from analysts on important technical developments in the foreign exchange market.
EURO/DOLLAR: Pair "is testing its medium term declining resistance line, coming at $1.2060 today. It would take a close above this trendline to question a comeback to the $1.1870 support area or even to the $1.1765 low of April 2004 next week."
DOLLAR/YEN: Dollar/yen "dipped to the 114.90/115.10 yen pullback area and then bounced. We expect it to come back to Wednesday's high of 115.95/116.00 and then resume its medium term uptrend towards the 118.45 Fibonacci retracement level."
US DOLLAR/CANADIAN DOLLAR: Pair "is likely to re-target the C$1.1690 key support area today provided the C$1.1800 resistance level holds. Then, it will take a close below C$1.1690 to consider that the upside correction started at C$1.1590 two weeks ago is over."
DOLLAR/SWISS FRANC: Pair's "break below the medium term rising support line, coming at 1.2870 francs today, has to be confirmed on a closing price basis. In that case, we should see a test of the 1.2660/75 zone before dollar/Swiss franc re-targets the 1.3080 region."
STERLING/DOLLAR: "The $1.7800 Asian high stalled just below pivotal 1.7810/15 resistance from the October 6 high. With short term momentum now bearish off an overbought extreme (hit earlier today), the next swing should be lower.
However, cable must break 1.7715/20 support (today's low) to trigger a sizeable decline, with a further break of 1.7665 required to signal a top is in place at 1.7800. Short term resistance at 1.7785/90 (today's European high) must hold to keep the short term bearish bias intact."
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