Forex Technical Analysis

KBC Bank
http://www.kbc.be/dealingroom

EUR/USD:(1.2720) Above channel top off 1.2939 and ST double bottom

Mon, 30 Oct 2006 14:20:30 GMT
by KBC Market Research Desk

Above channel top off 1.2629 and ST Double Bottom off 1.2642 (see graph: potential at 1.2762/ 1.2800).

 1st Support area at 1.2714/ .02 (daily envelope/ ST break-up daily), with next levels at 1.2691 (ST break-up hourly), ahead of 1.2661/ .42 (Friday's low/ see graph + break-up weekly) and 1.2621/ .18(ST break-up hourly/ weekly envelope): ideal area to stay above to keep current better mood on € intact.

 Inability to hold would see next level at 1.2597 (daily MT MA↑): difficult on 1st tests. Resistance area at 1.2732/ 1.2750 (today's high? + reinstalled daily Downtrendline off high/ last week high), with next levels at 1.2762/ .67 (see above/ Oct 03 high + daily Bollinger top). 1.2783/ .2800 = daily Starc top/ 2nd target off 1.2642/ Oct 03 high, where a pause is expected.  

SUPPORT	RESISTANCE
1.2714/ .02 (daily envelope/ see above)	1.2732/ .50 (today's high?/ last week high)
1.2691 (see above)	1.2762/ .67 (see above / Oct 03 high + daily projection
1.2661/ .42 (see above + daily ST MA↑/ see	1.2783/ .2800 (daily Strarc top/ see above + weekly

For in-depth insight on other currency pairs:

• USD/YEN: (117.43) Below channel off 113.96 and the double top off 118.03
• EUR/GBP: (.6703) Channel bottom off .6822 held
• EUR/JPY : (149.33) Back in triangle pattern