Sterling at 21-year low vs Swedish crown

LONDON: Following is a selection of comments from analysts on important technical developments in the foreign exchange market.

SEB

EURO/DOLLAR: "A three day rise ending with a doji (spiking above the daily mid body point and basically at the weekly one) clearly seems to be setting the stage for possible another round of weakness. Given that the decline in February has emerged from a potential target zone we have a slight bias for the downside and will continue having that unless breaking $1.3597 (break = $1.3790)."

DOLLAR/YEN: "Momentum indicators such as slow stochastic (13) has rolled over to the downside in both the dailies and weeklies and doing so from a divergence position suggests that downside risks are on the rise. The pair is also showing lack of momentum on top of the 3 standard deviation 233-day Bollinger bands and an hourly head and shoulders top possible in its latter stages so a temporary setback looks ready to kick in."

STERLING/SWEDISH CROWN: "The cross yesterday crashed through the 1995 low point and down to levels not seen since 1992 (pre float). This is basically uncharted territory (except a touch down at 8.9655 crowns in 1992 and sub 8 in the 1970's) but Fibonacci projection points might give a few guidelines of where to look for support. The next one is located at 9.6860 crowns. Together with the cross outside its 233-day 3 standard deviation Bollinger and being in a pre-divergence mode a soon to come bounce should not come as a surprise."

EURO/SWEDISH CROWN: "The break of 8.5060 crowns triggered what can be see as a head and shoulders top, even though the size of the top formation doesn't fit the size of the trend leading up to it. Nevertheless the break is bearish and should lead to more selling, both initially today and after a following reaction higher to recheck and validate the break. So look for an 8.43 test and then a return back closer to 8.50 crowns (remember that 1 percent or more days often tend to spike the following day)."

STERLING/DOLLAR: "The pound was sent into another tailspin after the IR-report yesterday, sending the pair into a low and bearish looking close. The recent IMM report showed that speculative longs were more or less neutralized, while they now must pile in on the other side. Short-term conditions are stretched but in this pace the standard of stretch will move alongside spot and soon give room for a test of the next real supports below at $1.5393 and $1.5269."