Euro Targets $1.3360 Then $1.3080 |
LONDON, Nov 17 (Reuters) - Following is a selection of comments from analysts on important technical developments in the foreign exchange market.
CMC MARKETS
* EURO/DOLLAR: "The weakness in the single currency accelerated yesterday hitting our target of $1.3500 as the euro looks to be heading towards the $1.3360 level, which would be 38.2 percent retracement of the up move from the June lows at $1.1880 to the highs at $1.4280. Having broken and closed below the 50 day moving average at $1.3640 the emphasis shifts even more firmly to the downside. Pullbacks should now be limited to this resistance at $1.3640 as and behind that at the $1.3800 pullback line resistance. A break of $1.3360 would then target $1.3080 which is the 50 percent retracement level of the same earlier up move."
* DOLLAR/YEN: "While the US dollar continues to remain above the 50 day moving average at 82.70 yen, the risk remains for a larger move towards the 84.20 level. The market continues to make higher highs, as the pair closes in on this move higher, while above the 82.70 area. Back below 82.70 re-targets 81.80."
* STERLING/DOLLAR: "The failure to overcome resistance around $1.6180 saw the pound break through our support levels at $1.6020, and the monthly lows of $1.5960. Yesterday's decline also saw the pound break through $1.5880 to hit the $1.5820/30 trend line support from the 17th June lows at $1.4645. This area now becomes a key support level as it is also the 50 day moving average support as well. Pullback should find resistance around $1.5960, the previous lows of the month and above that at $1.6030. A break and close below $1.5820 could well target a strong move towards $1.5510 which is the 38.2 percent retracement of the entire up move from the May lows at $1.4230 to the $1.6300 highs earlier this month."
* EURO/STERLING: "The 84.50 trend line support from the August lows around 81.40 continues to hold as we look to target the next major support around the 84.00 level which is 61.8 percent retracement of the 80.70/89.40 up move, as the single currency looks set to line up a re-test of the August lows at 81.40. Intraday resistance continues to be found around the 85.20/30 area, while the larger resistance remains around the 200 day moving average around 85.80."
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KBC
* EURO/DOLLAR: "Drop from new recovery high puts the pair back below daily Medium Term Moving Average ($1.3822) and below the neckline of multiple Tops pattern ($1.3775), with daily Bollinger bottom at $1.3469. Support area at $1.3469, with next levels at $1.3446/1.3435 (current reaction low off $1.4283 and reinstalled weekly Uptrendline off 2002 low/ 50 percent $1.2588 to $1.4283 and daily modified Standard Error band bottom) … next levels at $1.3389/1.3383 (2nd target daily Triple tops off $1.3775/ daily envelope bottom), ahead of 1.3363 (38.2 percent year low to $1.4283) and $1.3334. Resistance at $1.3565 (breakdown hourly), with next level at $1.3583 (daily envelope top and daily Short Term Moving Average) … next levels at $1.3657/1.3658 (reaction high hourly and daily modified Alpha beta trend top/ reaction high hourly)."
* DOLLAR/YEN: "Rebound off new year low above key area of 81.93/ 81.99 yen and testing daily Bollinger top (83.45). Resistance at 83.60/ 83.65 (current recovery high off 80.21/ last target off 81.93), ahead of 83.69/ 83.77 (23.6 percent 94.99 to 80.21 and daily modified Standard Error band top/ 2nd target off 81.99 and daily envelope top) … next level at 83.99 (Oct 05 high and daily modified Alpha Beta trend top) and 84.32 (daily Starc top and weekly Bollinger midline): tough on 1st attempts. 1st Support area at 83.24 (reaction low hourly), with next levels at 82.96/ 82.92 (daily Short Term Moving Average), ahead of 82.85/ 82.70 (reaction low hourly and daily modified Alpha Beta trend bottom/reaction low hourly)".
* EURO/YEN: "Drop from 115.42 yen retested broken Downtrendline off 115.68: currently back above daily Downtrendline off high (112.33 today). Resistance at 113.12/14 (daily Medium Term Moving Average and daily envelope top/ breakdown hourly), with next levels at 113.45/48 and 113.65/ 89 (current week high/ breakdown daily)".
* EURO/STERLING: "First support area at 84.89/84.81, ahead of 84.52/50 (current week low/ current reaction low off 89.41), where pause favored. … next levels at 84.35 (daily envelope bottom), ahead of 84.13/84.00 (break-up daily Sept 20/ 61.8 percent 80.67 to 89.41) and 83.96 (daily Bollinger bottom). 1st Resistance area at 85.26 (current week high and daily envelope top and daily modified Alpha Beta trend top)".
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