Following is a selection of comments from analysts on important technical developments in the foreign exchange markets:
DOLLAR INDEX: "Very slow work over the last nine months with prices trading in a relatively narrow band around a mean at 85.00. We shall allow for more random moves over the next month or two, with contracts hopefully holding between 84.00 and 86.00 most of the time.
More importantly investors should be aware that rarely has this dipped below 80.00, so we are close to the weakest for this index which was 78.45 in September 1992.
DOLLAR/YEN: "More sharp intra-day price swings as the dollar bounces from trendline support at 120.00 yen...Allow for topping activity again against the 121.80 area. The down again towards 120.50."
EURO/YEN: "More sharp intra-day moves with yesterday's 'spike low' acting as a counterbalance to Wednesday's 'bearish engulfing' candle. This underlines the fact that powerful forces are looking for direction.
We remain within normal retracement parameters. Do not jump the gun and assume candles will be bearish at the end of the day or the end of the week/month.
EURO/DOLLAR: "The euro consolidated below key resistance at $1.3000/$1.3055 (19th January previous high and 18th December low) again yesterday before finally breaching key support at $1.2945 (9 day support line).
Comments
Comments are closed.