28 June 2001, 11:05  TECHNICALS-Forex market outlook and key levels

LONDON, June 28 - Following is a selection of comments from analysts on important technical developments in the foreign exchange market.
TECHNICAL ANALYSIS TEAM, CAPITAL MANAGEMENT
* EURO/DOLLAR: "The sharp break from marginal new highs of $0.8660 should be the start of a new downswing to $0.8550 as part of the current consolidation triangle. This pattern implies a full test of the $0.8220 base before a medium-term upside reversal. A move over $0.8660/$0.87 confirms an early turn above $0.9250."
* DOLLAR/YEN: "The dollar has recovered well from the recent 123.20 corrective low. Stay bullish for rally to new highs in the 125.20-50 area before the start of the downside correction. Only a direct loss of 123.25-60 support would suggest a reaction to 121.50-122 has begun."
* STERLING/DOLLAR: "Having failed ideal downchannel resistance at $1.4225, sterling has a chance for a larger correction to the $1.3950-$1.40 area. This $1.4225 level should now contain, but only a recovery through $1.43 would sustain a rally to about $1.4415 before there is a larger topping pattern."

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