Finotec News Archive - November 22 2007

Banks Recommendations

Liran Kapeluto
22 November 2007

Add to bookmark:

Print this article

Subscribe to RSS

ANDREW HART, COMMERZBANK CORPORATES & MARKETS

EUR/USD: "The euro posted a second consecutive daily close above the previous $1.4751 Nov. 9 high yesterday. Whilst we view this as positive for further gains shorter term the daily RSI (relative strength indicator) momentum oscillator remains neutral to positive alerting us that $1.4751 is still eroding and not yet confirmed as a trend break for strong uptrend acceleration just yet. Near term we must still allow for pullbacks to $1.4751 possibly even $1.4696/ 9 day rising moving average ahead of further gains. Targets remain initially $1.4890/Elliott wave en route to test the major psychological level of $1.5000 shorter-term.

USD/CHF: "We continue to view USD/CHF as currently only eroding major support at 1.1100/1995 francs as the daily RSI momentum oscillator remains neutral to negative and still has not conclusively confirmed that the market is trending down below 1.1100 yet. Nearterm this leaves us still allowing for a minor corrective rally to be seen and the previous minor support levels of 1.1176/87 remain the ideal corrective retracement level to cap, maximum 1.1280 now ahead of further losses."

USD/JPY: "Formed a new low for the year yesterday at 108.25 yen closing below the major support zone of 109.00/108.76 (its 2005 and 2006 lows, highlighted) and ending the recent negative consoliation phase. We now view the market is a minor sell on rallies whilst ideally 109.60/prevous minor low and one month downtrend highlighted holds and maximum the psychological resistance level of 110.00."

EUR/GBP: "Tested higher yesterday but again appears to be slowing/stalling at key overhead resistance now located at 72.00/14 pence (December 2004 high and 5 month channel resistance highlighted). We continue to interpret this as the up move is slowing in a terminating phase and although we still cannot confirm a top is in place yet, we view the markets accelerated up trend support currently located at 71.89 pence is exposed to commence a correction/reversal lower (a daily close below confirms)."

GBP/USD: "Eroded its key 9 day moving average (currently located at $2.0579) as favoured yesterday and we therefore continue to view that the market is attempting to resume its longer term up trend. Shorter term we still favour the $2.0351 recent low is a corrective base in place but very near term maintain that the market is still a buy on dips whilst support identified at $2.0454 ideally still holds. Our initial upside target remains $2.0852/50 percent retracement of previous down-move where we view the market will stall for now."

SEB RESEARCH TEAM
EUR/USD: "After an initial minor setback the pair continued its advance, printing a fresh high. The market should however be in the final part of the advance towards the ideal triangle target, $1.4920. Thereafter a reaction towards the apex point, $1.4660, looks likely."

AUD/USD: "The market yesterday fell through $0.8750, triggering a tidal wave of sell orders. The current setback should be short lived and we expect to find sellers lining up around $0.8800. Passing $0.8677 sets $0.8585 & $0.8430 in the limelight."
EUR/SEK: "After Tuesday's close above 9.2800 crowns, triggering the buy signal, the pair has continued to rally, passing resistance after resistance. Yesterday's violation of 9.3430, spells further trouble for the SEK, pointing towards a test of the top line, 9.40ish."

Finotec Analysis Team
22 November 2007

Print this article