Selection of comments from analysts on important technical developments in the foreign exchange market.
EURO/DOLLAR: "The market is consolidating but retains its bullish bias. It still looks as if buyers will send levels above the recent $1.3639 top, which will make the $1.3680 all-time-high look vulnerable. A break above it should extend the uptrend to a projected. Possible top at $1.3715. There is no sign of any top taking shape so only a break below the last low at $1.3586 implies that the uptrend has entered a correction phase, which will open the way down to $1.3550 and potentially $1.3495."
DOLLAR/YEN: "Prices are pushing higher again after the successful defence of the 122.10 yen support. The next challenge for the bulls lies at a downward sloping resistance line at 123.15 and a tested resistance at 123.52. Taking that out will likely lead to the elimination of the massive 124.50 barrier. That, in turn, will open the way for a further rally towards 125.90. New support has been established at 122.55 but that main area remains the 122.10 level."
STERLING/DOLLAR: "The up trend remains in full swing but could start correcting lower as prices approach a projected possible top at $2.0225. Slipping below the last low at $2.0134 is the first sign that the uptrend is entering a correction phase which should reach at least $2.0072. On the upside, breaking above $2.0225 targets up to the next projected possible top at $2.0675."
EURO/YEN: "The uptrend is taking off again and prices remain on course to a projected possible top at 173.10 yen. Only a break below the last low at 166.15 implies that the uptrend has entered a correction phase and could see levels drift down towards 164.25."
DOLLAR/YEN: "The yen crosses have shown little sign of topping and we still see 122.10-121.40 yen area as a basing zone in dollar/yen. We therefore struggle to be dollar bears elsewhere and not be yen cross bullish. We are also bullish the stock markets and that will only lend support to the carry trade."
EURO/STERLING: "Has effectively rejected resistance at 67.60/80 pence and we are watching the price action closely, but at this very moment while under there we cannot rule out a slip back towards 67.00 pence again. We still believe we are in a medium term basing process but this can take a while before it fully plays out."
NORWEGIAN CROWN: "Set to remain an out performer supported by a bullish oil market. 8.00/8.06 crowns is still key resistance in EUR/NOK, while resistance in USD/NOK runs from 5.90 up to 5.9750. However, yesterday's price action in NOK/SEK is starting to suggest once again that a significant top is trying to develop in this cross and such a move we believe should come through the Swedish crown rather than Norwefian crown falling."
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