LONDON, July 13 - Following is a selection of comments from analysts on important technical developments in the foreign exchange market.
GERRY CELAYA, CHIEF STRATEGIST, REDTOWER RESEARCH
EURO/DOLLAR: "We saw a day of retracement on Thursday as the euro sank through $0.8550 to near the $0.8500 support level, once again highlighting the fact that this is still a bear trend. Watch the $0.8500 zone closely as a sustained break through here sets up a move to $0.8485/60 and then much lower. This is not really favoured and we would instead look for attempts to hold support and bounce, aiming for a push through $0.8540 for $0.8585 and then to $0.8600. While the U.S. equity market rally on Thursday could draw more flows into the dollar, $0.8460 should remain untested on this move, and bounces from $0.8500 will be seen. Euro bulls need to see $0.8540 give way early on to get excited, and then see a move through $0.8640 for $0.8700/30 and higher. This is favoured but looks tough near term."
* DOLLAR/YEN: "The push to support around the 123.50 area was worrisome, but for choice look for weakness to set in. We should see the yen move back to 124.50 and then probe 125 yet again. We are still looking for a big break of the latter level to set up a move to 126.85 and then higher, but this should be tough just now."
* STERLING/DOLLAR, EURO/STERLING: "Cable is tagging along with the euro for now and we favour buying on dips here but expect it to remain choppy near term. Euro/sterling is still expected to crack resistance, aiming for 61.20 (pence) and higher."