Forex market views and key levels

20 Aug, 2006

Following is a selection of comments from analysts on important technical developments in the foreign exchange market:
The next support area would be the confluence of the 61.8 percent fibo / 8/15 low at 1.6690/94. The larger trend is bullish as evidenced by steadily rising oscillators on the daily. A break above 1.6892 exposes the 8/8 high at 1.6924.
The bias then is for a return to the lower end of the channel in a 5th wave (a-b-c-d-e). Price is testing support at the a short term support line from the 8/11 low at 1.4241.
A break below there could then trigger the selling that takes the pair lower. Of note as well is the pair just slipping below the 20 day SMA.
The near term may see a bounce higher as hourly conditions are oversold and the pair is nearing minor support from the 8/16 low at 1.9966. Resistance is at today's high at 2.0121 and the 8/14 high at 2.0272.
These are located at 1.2685 and 1.2631 respectively. 1.2913 has now been defined as primary resistance with gains over the past few days being viewed as a correction.

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