Comments on technical developments in forex market

Following is a selection of comments from analysts on important technical developments in the foreign exchange market.
COMMERZBANK
EURO/DOLLAR: "EUR/USD is sitting at the top of a converging range, the limits of which are $1.4123, $1.4530. We ideally would like to see failure here, for our negative bias to remain entrenched. However should $1.4530 be cleared we must allow for a retest of $1.4732, the 78.6 percent retracement. Failure at $1.4530 will see a retest of the $1.4123 support line which is regarded as the break down point to the 200 week ma at $1.4017, the $1.3968 recent low and the 200 day ma at $1.3882. Above $1.4732 would imply a run up to the 41.4940/1.5145 major resistance, which if seen we would again expect failure."
DOLLAR/YEN: "USD/JPY has sold off to tested and held the 2 week shallow uptrend at 80.24 yen. It has recently closed above last weeks high at 81.08 and this suggests we will see a run up towards 81.74/82.17, the 55 and 200-day ma, which in turn guards the 2007-2011 downtrend at 83.33. Support lies at 80.05/10 ahead of the 79.79/57 support area (61.8 percent Fibonacci retracement of the March-to-April advance and May low)."
DOLLAR/SWISS FRANC: "USD/CHF is correcting higher, following the recent divergence of the daily RSI. This is now a triple divergence and it increases the risk of a decent rebound. Rallies will find tough resistance at 0.8547/54 francs (early May low and the 31st of May high and channel) - and only a close above here would negate extreme downside pressure. Dips will find interim support at 0.8300 ahead of the 0.8276 low."
STERLING/DOLLAR: "GBP/USD has been rejected by the 23.6 percent retracement of the sell off since May - this is located at $1.6108. It remains corrective and we remain unable to rule out further rallies to tougher resistance in the $1.6230/65 region which is expected to cap the advance. Our bias remains negative.
We need to see a CLOSE below $1.5957 to validate the break lower. Key resistance remains the downtrend at $1.6337 and while capped here the outlook is overall bearish. Targets remain $1.5855, the 55 week moving average then $1.5510/00 (38.2 percent retracement of move up from 2010)."
EURO/STERLING: "EUR/GBP is in new highs for the year. The market is poised to encounter the 9 month resistance line, which connects the October 2010 peak to the May 2011 peak. This lies at 90.72 pence. We would utilise dips back from here to buy the market as it has recently broken above a 2 year down channel (at 89.80 pence). Above 90.72 we target 91.40/48 (2010 high and long term Fibo). Longer term we would allow for 94.14 pence. Dips are expected to hold the accelerated uptrend at 89.20 pence."
EURO/YEN: "EUR/JPY is eroding its downtrend and 55 day ma at 116.72/76 yen - it will need to close above here (favoured) to initiate further upside potential. This would target the June high at 117.90 en route to 123.33, the April high. Intraday dips will find support at 115.10/114.55, however key support remains the 200-day ma at 114.04, the 55 week moving average at 113.13 and the 61.8% Fibonacci retracement at 12.93. While this holds we will assume the market holds upside potential."
EURO/SWISS FRANC: "EUR/CHF has breached its 55-day MA and its 3 month downtrend and in doing so negates the downside pressure which has been evident for months. Significant divergence of the daily RSI increases the risk of an upside break towards the 1.2400 franc pivot (December 2010 and the March 2011 low). This move looks directional and we suspect is part of a major turn. Above 1.2400 would see a target of 1.2980 engage (top of one-year channel). Intraday dips should hold 1.2080/25."