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EUR/USD: (1.4818) Back in channel off 1.3832

Wed, Oct 28 2009, 06:30 GMT
by KBC Market Research Desk

KBC Bank


Analysis

Drop from new recovery high puts the pair back in channel off 1.3832 and in the inverted daily channel off June low (top at 1.4875 today).
Support area at 1.4769 (current reaction low off 1.5064 + daily projection band bottom), with next levels at 1.4760/ .4753 (daily Long Term Moving Average↑/ 23.6% 1.3748 to 1.5064), where pause favored; If wrong, next levels at 1.4725 (daily envelope bottom), ahead of 1.4683/ .4679 (medium term reaction lows/ daily Uptrendline off June low): tough on 1st attempts.
Resistance at 1.4870/ .4875 (daily envelope top/ see above), with next levels at 1.4900/ .4908 (daily Short Term Moving Average↓/ broken daily Medium Term Moving Average↑), ahead of 1.4928/ .4964 (reaction high hourly/ breakdown hourly), where pause favored.
If wrong, next level at 1.5013 (breakdown hourly), ahead of 1.5064 (new recovery high off 2008 low) and 1.5105 (daily Bollinger top): tough on 1st attempts.

USD/JPY: (91.26) Above 90.42 and in Flag off 88.01

EUR/GBP: (.9060) Back below .9160 and .9078

EUR/JPY: (135.24) Below channel off 129.58


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KBC Bank  | Havenlaan 12, 1080 Brussels
http://www.kbc.be/dealingroom | piet.lammens@kbc.be

Legal disclaimer and risk disclosure

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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