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EUR/USD: (1.2623) Could not sustain below 1.2527 (see graph)

Wed, Nov 19 2008, 06:33 GMT
by KBC Market Research Desk

KBC Bank


Analysis
Drop from 1.3294 could not sustain below 1.2527 and toying with channel top off 1.4867 (see graph): Support area at 1.2565/ .2544 (reaction lows hourly), with next levels at 1.2512/ .2503 (current week low/ daily envelope bottom): tough on 1st attempts.
If wrong, next levels at 1.2448 (reaction low hourly) and 1.2396/ .2388 (daily Bollinger bottom/ last week low).
1.2331 = reaction low off high, ahead of 1.2300 (2nd target of daily channel break off 2005 low), where pause favored.
Resistance at 1.2698/ .2701 (breakdown hourly/ daily Medium Term Moving Average↓), with next levels at 1.2740/ .2745 (current week high/ daily envelope top), where pause favored.
If wrong, 1.2823/ .2853 = weekly envelope top/ Nov 13 high: tough on 1st tests.

USD/JPY: (96.58) Failed to extend below channel off 110.67

EUR/GBP: (.8442) In channel off .7694

EUR/JPY: (122.03) Drop from 131.06 retested broken channel top off 155.20


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KBC Bank  | Havenlaan 12, 1080 Brussels
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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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