Banks Recommendations

Liran Kapeluto
11 April 2008

Add to bookmark:

Print this article

Subscribe to RSS

Following is a selection of comments from analysts on important technical developments in the foreign exchange market.

Market strategy: bullish euro/dollar but will buy $1.55

JPMORGAN
EURO/DOLLAR: "We are still bullish euro/dollar and still believe this range process will give way to new highs through $1.60, but we will again be better buyers at lower levels in the $1.55-1.54 region."

DOLLAR/SWISS FRANC: "A horrible range and one that again after yesterday's price action warns that we could still see that C wave spike up towards 1.0350/1.04 francs before setting new lows through 0.9500. We wait and watch."

DOLLAR/STERLING: "We are still in a falling wedge type pattern. We can therefore see cable back down towards $1.96/1.9550 but expect it to be limited to around there within the core USD bear trend."

COMMERZBANK CORPORATES & MARKETS

EURO/DOLLAR: "The nine-day moving average still looks to ideally support the market and maximum the 27-day moving average ahead of $1.5904/1.5912, breaking sustainably to initially challenge psychological resistance at $1.6000."

DOLLAR/YEN: "Today we look for the market to close below 101.28/101.41 yen to confirm the longer-term downtrend is resuming to initially challenge the previous 98.54 March 27, 2008, low (near term) en route ultimately to retesting 95.71 March 20, 2008, the low for the year so far."

DOLLAR/SWISS FRANC: "The 0.9642 franc March 17 low is now considered to be exposed shorter term to lead to further down trend losses towards initially psychological support at 0.9500. Slightly longer term we now view 0.9642 March 17 low will trend break and lead to further losses to 0.9500 and ultimately our longer term target of 0.8872 in H1 2008."

EURO/STERLING: We now observe the $1.9666/2.0227 contracting trendline range parameters highlighted as a more elongated choppy/topping range indicates to unfold, a range within range dominates today with the bias to once again correct/test the upside for which to formate an inner range top and fail again."

Finotec Analysis Team
11 April 2008

Print this article