Following is a selection of comments from analysts on important technical developments in the foreign exchange markets:
EURO/DOLLAR: "This morning's surge through 1.3000 confirms the magnitude of investor sentiment and activity that is shifting towards bearish dollar/bullish euro tactics. Bullish Q4 targets: A weekly close today above 1.3000 confirms this week's triangle breakout, the pattern objective into next year should be 1.3500. However, near term focus will be on 1.3075-1.3100, and 1.3250."
EURO/YEN: "With the return above 151.00, the bullish November tone for EUR/JPY remains well intact. This activity is significant because it confirms a stronger euro position within G3 and G10. Q4 targets: Minimally a continuation towards 152.00, but the triangle target remains closer to 153.70. In addition, there is a virtual air pocket up to 162.00 from the 1998 Asian crisis."
EURO/DOLLAR: "The dollar is in a free-fall after the massive 1.2980 barrier was taken out. That said, possible resistance cuts in at 1.3125. Failing to clear it could cause some back-pedalling towards 1.2920. There is no indication yet of any top forming; the fist hint of a correction lower comes under 1.3058. On the upside, a break above 1.3125 would likely postpone any downward correction until 1.3185 is reached."
DOLLAR/YEN: "The bears are getting ready to eliminate 115.58 which will likely cause another round of selling, driving levels down to the 114.40 handle. To avoid this, 115.58 needs to holds and the market needs to make it up past 116.50. That would confirm a correction higher is occurring with room to 117.52.
STERLING/DOLLAR: "The bulls bashing the 1.9325/51 top and taking it calls for an extension up to 1.9550. A former head-and-shoulders top formed there so breaking above it could prove difficult. So far there is no sign of top forming so only under 1.9290 implies that the market is starting to correct some of the recent upswing and could make it as low as 1.9128."
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