Following is a selection of comments from analysts on important technical developments in the foreign exchange market.
EURO/DOLLAR: "Euro up sharply after US jobs data and now through 3-week bull channel resistance projection near $1.2275. Sights are set back on the $1.2350 08-June peak with $1.2305 the immediate obstacle. Above $1.2350 and we're back on track for $1.2480, the key 61.8 percent retrace of the $1.2925-1.1760 Feb-April decline.
Also worth considering that a big range may still be unfolding and that $1.2350 will ultimately hold for a swing lower. We'll be keeping our eyes on hourly studies for hints of this possibility as we get closer to that area."
EURO/YEN: "Back up sharply from 131.30 yen area to probe above 133.00 yen again. Daily MACD Histogram is crossing bullishly today, but need to sustain these highs to keep that true. Currently supported by 38.2 percent retrace of latest rise at 132.35 yen and heading back to the 30-June 133.40/45 yen peak.
Breach there is needed to start us higher towards the 134.00-134.25 yen area with a 133.65 yen (2-day bull channel res projection area) the initial target."
DOLLAR/YEN: "It sold off sharply again after a marginal violation of 6-week bear trendline at 109.25 yen, now bouncing off 7-day rising support line near 108.05/10 ten. It appears as if a broad tightening range wants to unfold which could mean we'll now swing higher to 108.85-109.00 yen again.
Losing 108.05 yen would likely start us lower through 107.85 yen and eventually back to the 107.00 yen area."
DOLLAR/SWISS FRANC: "Fall from 1.2675 francs extends to the 1.2350 francs, the key 08-June low now just below at 1.2325 francs. Loss there opens an initial 1.2275-1.2265 francs target area with longer-term potential being for sub 1.2200 francs levels.
Near-term, wondering if 1.2325 francs will hold for now and we'll see some consolidative or corrective phase higher ahead of the US holiday weekend. 1.2430-1.2485 francs now offers immediate resistance."
AUSTRALIAN DOLLAR/US DOLLAR: "Pullback held around US$0.7015 and just above the previous triangle resistance at US$0.7005. Subequent rally breaks upward and out of the small intraday bear channel. Having exceeded US$0.7100 the next targets are situated in the US$0.7125-30 area. The former an equality rise objective from US$0.6880 and the latter a 38.2 percent retrace of the fall from the April highs around US$0.7690. Support from US$0.7075-70 and then the more pivotal US$0.7060 level."
STERLING/DOLLAR: "Sharply higher on heels of US jobs data with US$1.8345 4-week falling resistance line the next key level/target. Just a tad cautious here out of respect for the trend (and at $1.8330 3-day bull channel resistance projection). A breach here, however, and we like $1.8385 and possible $1.8410 test".
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