Comments on technical developments in forex market

24 Apr, 2011

Following is a selection of comments from analysts on important technical developments in the foreign exchange market.
COMMERZBANK
EURO/DOLLAR: "We are surprised at the strength of the euro currently. The market has started to erode the $1.4535/1995 high. This is a very key resistance for us a weekly close through this level will cause us to adopt a more neutral to positive bias."
DOLLAR/YEN: "USD/JPY is attempting to stabilise at 82.00 yen, the 50 percent retracement of the rally from March. It is struggling and ideally we would like to see the market regain 84.00 in order for a retest major resistance at 85.60/84 to become viable (long-term Fibonacci and channel)."
STERLING/DOLLAR: "GBP/USD is again probing the topside and looks set to retest key resistance at $1.6425/65. This is a double Fibo and the 2010 high and we will need to see a weekly close above here to confirm that it is broken."
EURO/YEN: "EUR/JPY is attempting to stabilise and reassert its upmove. Ideally a sustained break above 120 yen should reignite upside interest for a retest of 123.33, the recent high."
EURO/STERLING: "EUR/GBP's strong rally higher has somewhat neutralised our immediate outlook - should the market regain 88.85 pence we will have to assume it is capable of another run up to the major resistance at 89.35/45, (the 50 percent retracement of the move down from 2009 and the October 2010 high), which we suspect will again hold."

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