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EUR/USD: (1.4034) Above Triangle pattern, but at apex (see graph)

Wed, Jul 1 2009, 05:45 GMT
by KBC Market Research Desk

KBC Bank


Analysis
Daily Long Term Moving Average↑ (1.3956 today) managed to act as Support in recent downmove, with pair above Triangle pattern, but at apex (see graph).
Support area at 1.4000 (reaction low hourly), with next levels at 1.3982 (current week low + daily Bolllinger midline), ahead of 1.3964/ .3956 (daily envelope bottom/ daily Medium Term Moving Average→ + see above), where pause favored.
If wrong, next levels at 1.3916 (see below), ahead of1.3889/ .3888 (reaction lows hourly) and 1.3866/ .3860 (weekly Uptrendline off March low/ weekly envelope bottom): tough on 1st attempts.
Resistance at 1.4060 (breakdown hourly), with next levels at 1.4120 (idem + daily envelope top), ahead of 1.4153/ .4178 (current week high/ June 11 high + see graph: neckline Double Bottom + daily Bollinger top), where pause favored.
If wrong, 1.4252/ .4266 = daily Downtrendline off Sept 2008/ monthly Bollinger midline: tough on 1st attempts.

USD/JPY: (96.85) Back in Triangle

EUR/GBP: (.8545) Back in channel off .9082

EUR/JPY: (135.93) Above flag


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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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