JUL-07-DJ European Forex Technicals

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EUR/USD Eyes Gains Towards 1.2765
  DJ European Forex Technicals Wed Jul 07 02:11:00 EDT 2010 EUR/USD Eyes Gains Towards 1.2765 By Francis BrayA DOW JONES NEWSWIRES COLUMN LONDON (Dow Jones)--Rolling 24-hour chart levels: Forex spot: EUR/USD USD/JPY GBP/USD USD/CHFSpot 0500 GMT 1.2585 87.45 1.5128 1.06283 Day Trend Bullish Bearish Range BearishWeekly Trend Bullish Bearish Bullish Bearish200 day ma1.3354 91.64 1.5392 1.08363rd Resistance 1.2765 88.30 1.5288 1.07502nd Resistance 1.2673 88.22 1.5228 1.06971st Resistance 1.2663 87.98 1.5161 1.0655Pivot* 1.2590 87.621.5153 1.06061st Support 1.2565 87.33 1.5070 1.05622nd Support 1.2518 86.96 1.5050 1.05033rd Support 1.2479 86.72 1.5000 1.0435 Intraday EUR/USD: Tuesday's bullish outside day defines the short-term trend, and isconsolidating beneath insignificant resistance at 1.2673. Having completed an inverse-head-and-shoulders pattern, the main threat is for further strength towards the wave equality target at1.2765. Support lies at 1.2518 toprotect Tuesday's low at 1.2479, and only below there wouldconcern near-term bulls.Weekly chart EUR/USD trend: Bullish.Intraday USD/JPY: Weakness off Tuesday's truncated high at 87.98 brings the focus back ontosupport at 87.33. A break below thereis expected to prompt further weakness towards the July 1reaction low at 86.96, shielding the 1.618 extension target at 86.72. Only above 87.98 wouldquestion the bearish outlook, opening 88.22 and short-term pivotal resistance at 88.30.Weekly chart USD/JPY trend: Bearish.Intraday GBP/USD: The key resistance level at 1.5228 has once again beaten back strength, andsuggests a triangle consolidation pattern may be underway. The probe below 1.5132 threatens toextend towards the range floor at 1.5070, and backup support lies at 1.5050. Another test of 1.5228 would suggest a breakthrough is not too far away, opening 1.5288.Weekly chart GBP/USD trend: Bullish.  Intraday USD/CHF: Set a fresh eleven-week low at 1.0562 Tuesday, but the failure to attractfollow-through weakness has prompted a recovery back above 1.0600. However, to strengthenthe 1.0562 low, a break above 1.0655 is required, creating scope for further gains towards theJuly 2 lower high at 1.0697. Failure to hold onto 1.0562 would extend the dominant bear trendtowards 1.0503 and the April 1 higher reaction low at 1.0435.Weekly chart USD/CHF trend: Bearish. Forex spot: EUR/GBP EUR/JPYEUR/CHF AUD/USDSpot 0525 GMT 0.8326 110.19 1.3372 0.84923 Day Trend Bullish Bullish Range BullishWeekly Trend Range Bearish Bearish Bearish200 day ma 0.8673 122.40 1.4436 0.87493rd Resistance 0.8380 112.00 1.3500 0.85952nd Resistance 0.8367 111.00 1.3434 0.85651st Resistance 0.8340 110.85 1.3413 0.8528Pivot* 0.8313 110.18 1.3361 0.84671st Support0.8295 109.87 1.3350 0.84412nd Support 0.8250 109.64 1.3284 0.84033rd Support 0.8218 109.14 1.3218 0.8318 Intraday EUR/GBP: Maintains the strong recovery off last week's 2010 low at 0.8067 followingthe push above 0.8299, and is closing in on resistance at 0.8367. This protects the June 17reaction high at 0.8380, and an inverse head-and-shoulders base appears to be forming on thedaily chart, suggesting a near-term peak not far below the 0.8380 high.Corrective weakness willattract support at 0.8295, and only below there would begin the formation of the right-handshoulder, exposing 0.8250 and 0.8218.Weekly chart EUR/GBP trend: Range.Intraday EUR/JPY: Tuesday's bullish outside day extends the recovery off last week's 2010 lowat 107.30, and will look to renew pressure on key resistance around the 111.00 level. Tuesday'shigher low at 109.14 underpins the short-term uptrend, but a sustained break above 111.00 isrequired to give longer-term prospects a boost, opening the 112.00 area. Only a break below109.64 would suggest a return to the 109.14 low is likely.Weekly chart EUR/JPY trend: Bearish.Intraday EUR/CHF: Tuesday's solid recovery off 1.3284 questions the validity of the July 2marginal bull trap high at 1.3434, and Tuesday's bullish outside day suggests there is room formore strength. Resistance lies at 1.3413 to protect the 1.3434 high, and only a break throughthere would create room for the 1.3500 area. Loss of 1.3284 would put bears in control of thenear-term, exposing the 1.3218 higher low.Weekly chart EUR/CHF trend: Bearish.Intraday AUD/USD: Tuesday's bullish outside day provides an air of positivity following therecovery off 0.8318, and resistance in the 0.8558/65 area is the focus. While support at 0.8441  holds, the main threat is for a break above 0.8565, opening 0.8595 and the 0.8655 area. Backupsupport lies at 0.8403, and only below there would suggest a return to the 0.8318 low.Weekly chart AUD/USDtrend: Bearish. Disclaimer (This article is general financial information, not personalized investment advice, as it does not consider the unique circumstances affecting an individual reader's decision to buy or sell aspecific security. Dow Jones does not warrant the accuracy, completeness or timeliness of theinformation in this article, and any errors will not be made the basis for any claim against Dow Jones. The author does not invest in the instruments or markets cited in this article.)
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