NEW YORKJuly 11 - The following is a selection of comments on important technical developments in the foreign exchange market.
J.P. CHOREK, TECHNICAL ANALYST, CHOREK.COM EURO/DOLLAR: "The bull continues to press higher, methodically, slowly, and without too much fanfare. The steady rise has kept this market from getting too overbought too fast, and only a move below the $0.8519 reaction low would signal a notable correction unfolding. Until then, keep focus on the .8659/72 double top.
DOLLAR/SWISS: " With the sharp wave iii decline from 1.8004...I cannot rule out a move toward 1.7436 in the near run. There, wave iii would equal 1.618 of wave i. Still we have to be on guard for a correction at any time in wave iv. It should not move above the .382 retracement of wave iii, currently at 1.7765.
STERLING/DOLLAR: "The rise above $1.4127 clears the way for a run at the 1.4181 wave b of (ii) high. Penetration there is a matter of time and will pave the way for a run at 1.4227, the top of wave (i). Solid support at the 1.4047 should contain any pullbacks. We should soon see an acceleration of upward momentum given the wave .3 position from this support.
DOLLAR/YEN: "Dollar weakness has spread to this rate, as the pullback from 126.13 suddenly increased its momentum. The break of the 124.55 support (.618 of 123.58-126.13) is the first warning of the short-term bull trend finally taking a break. Penetration there opens the door for a run at the 123.58 reaction low. Only a break there would signal a short-term bear trend unfolding, but remember that the intermediate-term picture remains very bullish. Wave patterns are far from textbook in look keeping my confidence low, but they do suggest that the drop from 126.13 is a developing wave ii correction. This decline could move as low as 121.27 (.618 of 118.26-126.13 wave i) before the bull returns."

ROBERT KELLEY, TECHNICAL ANALYST, ELLIOTT WAVE INTL
EURO/DOLLAR: "Prices have advanced steadily, so the bullish view is on track. The move above Fibonacci resistance at $0.8549 is additional evidence that the larger trend has turned back up. Look for further gains to next resistance at the late June high at .8661. Good short-term support is located in the .8520-24 area. Though not expected, if this range is broken, a deeper decline to critical support located at the .8435-47 area would be possible. Only a decline below .8435 would call the bullish outlook into question.
"With the completion of a c-wave thrust down from May 17, the euro now shows a completed double zigzag wave B declining pattern from the January peak, and is entitled to stagger higher for a few months in wave C. .9050 is the point at which wave C would have carried a typical (for a triangle) 62 percent of last winter's wave A bounce."

DAVID SOLIN, TECHNICAL ANALYST, FX ANALYTICS
DOLLAR/SWISS: "Dollar/Swiss is taking a run at the base of its six-month bullish channel (currently at 1.7560/75) and is seen as a chance to start to rebuild medium term longs. However, there appears to be high risk of a 'false break' of that widely watched support level, getting the market negative/short, often a precursor for a sharp resumption of gains. Would view the break and possible spike lower as a chance to add to longs and not a sign to get short. Key support lies just below the base of the channel in the 1.7500/50 area (both a 50 percent retracement from the April low at 1.6855 and a 38 percent retracement from the March low at 1.6400)."