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Forex Technical Analysis

EUR/USD:(1.2823) Trying to recapture broken channel off 1.2522

Thu, Nov 16 2006, 07:32 GMT
by KBC Market Research Desk

KBC Bank  |  View company's profile


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EUR/USD chart

Currently still above daily Downtrendline off year high (1.2798 today), with pair trying to recapture the broken channel off 1.2522 (see graph).

1st Support area at 1.2782/ .71 (daily envelope + daily MT MA↑/ yesterday low), with next levels at 1.2754/ .43 (daily projection band bottom/ weekly ST MA↑): tough on 1st tests. 1.2706 = broken LT daily Downtrendline off 2004 high = ideal area to stay above to keep current better mood on € intact.

Resistance area at 1.2835 (ST high hourly), with next levels at 1.2863 (daily envelope), ahead of 1.2871/ .77 (previous reaction highs hourly) and1.2900/ .2907 (last week high/ daily Bollinger top): difficult on 1st tests. If wrong, 1.2939 = Aug 21 high + daily projection band top, ahead of 1.2959/ .79 (weekly envelope/ year high + daily Starc top), where pause expected, amid ST overbought readings.


SUPPORTRESISTANCE
1.2819 (daily ST MA→)1.2835 (ST high hourly)
1.2782/ .71 (daily envelope + see above/ yesterday low)1.2863/ .2877 (daily envelope/ see above)
1.2754 .43 (see above/ weekly ST MA↑)1.2900/ .2907 (last week high/ daily Bollinger top)

For in-depth insight on other currency pairs:

  • USD/YEN: (118.00) Toying back with neckline of double top
  • EUR/GBP: (.6791) Approaching .6794
  • EUR/JPY : (151.28) In channel off 147.72

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This non-exhaustive information is based on short-term forecasts for expected developments on the financial markets. KBC Bank cannot guarantee that these forecasts will materialize and cannot be held liable in any way for direct or consequential loss arising from any use of this document or its content. The document is not intended as personalized investment advice and does not constitute a recommendation to buy, sell or hold investments described herein. Although information has been obtained from and is based upon sources KBC believes to be reliable, KBC does not guarantee the accuracy of this information, which may be incomplete or condensed. All opinions and estimates constitute a KBC judgment as of the data of the report and are subject to change without notice.
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