LONDON, July 16 - Following is a selection of comments from analysts on important technical developments in the foreign exchange market.
RAHUL BADHWAR, SENIOR MARKETING MANAGER, HSBC. BOMBAY .
* EURO/DOLLAR: "The euro stayed above the nine-day moving average and the mid-Bollinger support at $0.8505 and rallied to $0.8562. This level is now a minute double bottom neckline with a breakout target set at $0.8610/20. The hourly stochastics are highly overbought and the daily stochastics have had a negative crossover. Ideally, $0.8615 should cap the upside with crucial resistance at $0.8640, the inverted head and shoulders neckline with a breakout target of $0.8940. We need a break and a close back below $0.8505 to open the way for a test of $0.8435-$0.8405. Thus the rally to $0.8644 either completed a corrective a-b-c or just a wave 'a'. If the former is true, then the downside has resumed for a test of the $0.8340/45 low. If the latter is true, then we are currently in a wave 'b' and a wave 'c' rally will take us above $0.8640/45."