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Following is a selection of comments from analysts on important technical developments in the foreign exchange market.
SOCIETE GENERALE
EURO/DOLLAR: "EUR/USD should extend the corrective down-move from $1.4550 to the $1.4105/10 support zone before reversing upwards."
EURO/YEN: "The 108.95 /109.00 yen support zone should contain any additional down-move and force the EUR/JPY to return to the 111.85/95 yen resistance area."
DOLLAR/YEN: "We may see a return to last week's high of 77.70 yen, or even to the upper end of the tentative declining channel coming at 79.00 this week (-0.30/week), before the USD/JPY points back to the key 76.25/30 support area."
STERLING/DOLLAR: "GBP/USD turned higher ahead of the $1.6100/10 region, but a return above the $1.6210 pullback level is needed to reduce the short term downside risk."
DOLLAR/CANADIAN DOLLAR: "We should see a return to C$0.9710, or even a dip back to the C$0.9640/50 support area, before the USD/CAD heads north again."
SEB
EURO/DOLLAR: "More downside action seen yesterday, passing the rather important milestone at $1.4327. The break and close below support (and the July support line) hints of further downside potential going forward, however likely limited to $1.4200 for today. An upward reaction is expected from the $1.4200 Fibo extension point. A weekly close below $1.4327 will also print a bearish key week reversal candle (here seen as downside continuation pattern)."
EURO/YEN: "With the break of 109.90 yen our bear case has gained further credibility and we are now awaiting a test of the b-wave low the key support and barrier to the next and even more important key support, 106.50 yen. Breaking 109.03 yen also means that a medium term stop can be lowered to 111.95."
AUSTRALIAN DOLLAR/US DOLLAR: "A three wave pattern higher under sharply falling volume, peaking above the previous day's highs and the 55-day MA band are all signs that the upward correction from early August has run its course. Accordingly we think that the downside risk now is increasing by the hour. Early birds should get short somewhere between current levels and $1.0725 with a stop above $1.0755, others on breaking $1.0685."

Copyright Reuters, 2011

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