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EUR/USD: (1.3995) Failed in its retest of 1.4178 (see graph)

Fri, Jul 3 2009, 05:49 GMT
by KBC Market Research Desk

KBC Bank


Analysis
Testing daily Long Term Moving Average↑ (1.3985 today), which managed to act as Support in recent downmove, with pair having failed in its retest of 1.4178 (see graph).
Support area at 1.3938/ .3934 (today’s + current week low?/ daily projection band bottom), with next levels at 1.3888 (reaction lows hourly), ahead of 1.3866/ .3860 (weekly Uptrendline off March low + daily envelope bottom/ weekly envelope bottom): tough on 1st attempts.
Resistance at 1.4035/ .4038 (daily envelope top/ daily Short Term Moving Average↓), with next levels at 1.4109 (reaction high hourly), ahead of 1.4163 (daily Bollinger top), where pause favored.
If wrong, next levels at 1.4202/ .4211 (current week high/ weekly envelope top), ahead of 1.4247/ .4266 = daily Downtrendline off Sept 2008/ monthly Bollinger midline: tough on 1st attempts.

USD/JPY: (95.97) Reapproached 97.08

EUR/GBP: (.8540) Retested .8605

EUR/JPY: (134.27) Back 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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