Following is a selection of comments from analysts on important technical developments in the foreign exchange market.
SEB
EURO/DOLLAR: "The market rushed too low, too fast it seems. The long lower shadow topped with high volume indicate good two-way business where an impressive amount of euros changed hands. Expect a mid-body and mid-band re-test, possibly as high as $1.4310 before turning south again.
"Allow for +$1.45 before considering the move lower this month being "just-a-correction" lower. Too fast through $1.40 would be a short-term stretch."
EURO/SWEDISH CROWN: "Too high, too fast? Neglecting the stretch has a price - eventually. Time to pay it? - Today will tell. A lower range extension (break below the European opening hour range) would show some supply hitting the market at 'high' levels. If so, look for a 9.1250 crown re-test before higher. Above 9.2250 would instead lift the target to 9.26-9.2860."
EURO/STERLING: "The move below the 55-day EMA did not receive a warm welcoming. The high session close even show some sort of demand returning to market - in line with the backdrop trend (or wave structure if you like). More buying initiative would show should the pair slip back through 88.43 pence again. Under 87.50-30 would deserve renewed downside attention."
EURO/YEN: "The long lower shadow (also crowned in good volumes going through) show good two-way business. if breaking above 114.97 yen, the mid-body point, the former support line and the lower end of the 55-day EMA band at 115.55 could see a re-test before lower again. Over 116.70 is needed to start considering the monthly highs (117.90) again."
EURO/NORWEGIAN CROWN: "The pair refuses to take advantage of both bearish and bullish prints. The Wednesday mid-body point saw a retest already yesterday (when others spiked clearly outside recently traded parameters). Sustained action under this mid-body point at 7.8365 crowns would expose the sub-7.80s again, while back over 7.8820-60 is needed to get upside focus back."
AUSTRALIAN DOLLAR/US DOLLAR: "At first sight the (volume laden) lower spike yesterday looks bullish, but when considering it well inside a broader range of late it loses some glare. OK, the market didn't like it below the 55day EMA band, but progress above 1.0625 is needed not to fall back under 1.0504 and the recent 1.0478 low again."
Comments
Comments are closed for this article.