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EUR/USD: (1.3909) Tested Neckline Head And Shoulders bottom (1.3793: see graph)

Mon, Jun 22 2009, 05:44 GMT
by KBC Market Research Desk

KBC Bank


Hourly Charts
Reversal Day at 1.4339 has sent the pair back towards 1.3739 (neckline Daily Double Bottom) and tested the neckline of a Head&Shoulders top (1.3793: see graph).
Support area at 1.3885 (reaction low hourly), with next levels at 1.3862/ .3859 (daily Long Term Moving Average↑/ daily envelope bottom) and 1.3822/ .3806 (reaction lows hourly), where pause favored.
If wrong, next levels at 1.3748/ .3739 (weekly envelope bottom + current reaction off 1.4339/ see above): tough on 1st attempts.
Resistance at 1.3953/ .3965 (daily Downtrendline off 1.4339/ daily Medium Term Moving Average↓), ahead of 1.4006/ .4013 (daily Bollinger midline/ current reaction high off 1.3748): must regain and sustain above to signal turn for the better for €.

USD/JPY: (96.09) 95.26 = 2nd target off 97.08

EUR/GBP: (.8433) Back below channel bottom off .9082

EUR/JPY: (133.65) Below 135.29


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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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