Finotec News Archive - December 19 2007
Bank Recommendations
EUR/USD is targeting to 1.4060 in two monthsLiran Kapeluto 
19 December 2007
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SEB MERCHANT BANKING
EUR/USD: "With offers expected ahead of the $1.4450 area we are looking for a fresh low in the $1.4310 area to complete the current wave. An upside reaction should follow."
EUR/CHF: "The steep fall seen over the past two sessions together with the re-entrance of the Nov/Dec consolidation range points to a potentially completed upside correction. A break below 1.6450 confirms. For today we are looking for offers towards 1.6585."
USD/JPY: "Since the 113.60 high on Friday the market has been forming an hourly bull flag which after the dip to 112.75 is ready to burst to the upside. Breaking 113.49 will be the confirmation for the next step up towards the head and shoulders target, 115.30."
SOCIETE GENERALE
EUR/USD: "The $1.3975/1.4085 support zone should contain any additional decline. Given the break below the key support zone at $1.4440/1.4535 and the validation of the head and shoulders pattern drawn since early November, the short-term risk is to the downside. However, we still think that the down-move, which started at $1.4965 in late November, is corrective. We expect the $1.3975/1.4085 support zone or even the mid-term pullback line, coming at $1.4160/65 today, to limit the downside before EUR/USD re-targets the $1.4965 high with intermediate resistance areas at $1.4525 and $1.4750."
EUR/GBP: "The lower end of the mid-term rising channel, coming at 70.69 today, should contain any additional decline. Given the break below the tentative support line, coming at 71.69 today, the downward consolidation started at 72.39 in early December, may be a bit deeper than expected. EUR/GBP is likely to test the 71.07 pullback level or even the lower end of the mid-term rising channel, coming at 70.69 today, before re-targeting the 72.54 high of May 2003 and the 73.52 Fibonacci retracement (2nd retracement of the decline from the 90.20 to 56.85).
Finotec Analysis Team
19 December 2007
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