LONDON, July 2 - Following is a selection of comments from analysts on important technical developments in the foreign exchange market.
TECHNICAL ANALYSIS TEAM, CAPITAL MANAGEMENT
* EURO/DOLLAR: "We still suspect a fuller test of the $0.8410 low will occur. However support there should yield a bounce back to $0.8520. Thus square on any dip to $0.8420 or on a rally through $0.85. Above $0.85 returns the dollar to consolidation and a retest of $0.8585/0.8620."
* DOLLAR/YEN: "Although marginal new highs to the 125.20/40 area are possible we believe the dollar is now very close to starting a correction to the entire 118.25-125.20 rally which targets the 121.60-122 zone. A push through 125.50 opens a run at the 126.80 high."
* STERLING/DOLLAR: "Sterling could well react back to the $1.4100/20 area before it comes under pressure again. Thus look to sell reaction to $1.4120 with a stop above $1.4180 as a breach of this level negates for a test of the $1.4230 high. Loss of $1.4030 confirms $1.3900."
* EURO/STERLING: "Although the decline has extended promising a deeper test of the 59.50 low, we doubt weakness can be sustained before another attempt at both 61.25 and 62.10 interim highs. A rally back through 60.50 confirms. Loss through 59.30 extends to 58.50 minimum."