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EUR/USD: (1.2517) Testing again channel top and toying back with 1.2527 (see graph)

Fri, Nov 21 2008, 06:51 GMT
by KBC Market Research Desk

KBC Bank


next report should be on nov 25

Analysis
Pair testing channel top from 1.4867 again and toying back with 1.2527 (see graph): Support area at 1.2426 (current week low), with next levels at 1.2388 (Nov 13 low), ahead of 1.2353/ .2343 (daily envelope bottom/ daily Bollinger bottom): tough on 1st attempts.
If wrong, next levels at 1.2331 (reaction low off high) and 1.2300 (2nd target of daily channel break off 2005 low), where pause favored, amid bullish divergences threats.
Resistance at 1.2547/ .2555 (daily Short Term Moving Average↓/ daily envelope top), ahead of 1.2593 (reaction high hourly) and 1.2638 (daily Medium Term Moving Average↓), where pause favored.
1.2823/ .2853 = weekly envelope top/ Nov 13 high: tough on 1st tests.

USD/JPY: (94.92) Currently back below channel off 110.67

EUR/GBP: (.8435) In channel off .7694

EUR/JPY: (118.55) Drop from 131.06 retested broken channel top off 155.20


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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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