NEW YORK, June 29 - The following is a selection of comments on important technical developments in the foreign exchange market.
JOSEPH KLETTNER, TECHNICAL ANALYST, COMMERZBANK:
EURO/DOLLAR: "Trade recommendation: Long positions from $0.8558 were stopped at $0.8494. Thursday's penetration of support at $0.8533 suggests that the rally off the June 11 low of $0.8411 was not the beginning of an uptrend like we had assumed on June 13 when the advance from $0.8411 penetrated the June 11 pivot high of $0.8540 and the declining 45 degree trendline at $0.8580. Now that support has been violated, we must view the rally to $0.8661 on June 27 as the completion of a 3-step a-b-c countertrend rally, not the beginning of a short-term uptrend.
"We suspect that the decline from Wednesday's high will fall below the June low of $0.8411 for an assault on $0.8228, last year's low. Below $0.8411 the only support we see before new lows are made is $0.8365, the lower 2 percent trading band. In the mean-time, if a bounce develops, we can expect prices to test no further than resistance at $0.8549/85. Rallies through here would be an indication that either a bigger consolidation is underway or another bottom has developed. "Even though the market has given back almost all of its gains since $0.8411, the June low, the three-day swing chart is still bullish provided the market doesn't slip back below $0.8411. The only way the euro can avoid a move below $0.8411, the market has to rally through resistance at $0.8585 which doesn't seem likely now."
DOLLAR/YEN: "Long positions were established at 118.80 risking 120.80 yen. The decline from the May 16 high of 124.05 was wave-c, the third step in the a-b-c consolidation from 126.84, the April high. Wave-c decline from 124.05 unfolded in a 5 wave pattern into the June 1 low of 118.30. Since then, prices have rallied to 124.99. On its way to 124.99 we saw the dollar take out initial resistance at 119.84/120.20 and then the resistance of the declining 45 degree trendline at 120.80. This bullish action was followed by an advance through 121.38, the last swing high on the short-term 3-day swing chart and then a move above 123.57, the 61.8 percent retracement of the decline from 126.84 and finally a move above 124.05 on June 20 flipped the medium-term weekly and 7-calendar day swing charts into bullish territory. The advance from 118.30 has given us lots of evidence to support our bullish count and the likelihood that wave-c has bottomed. Now that these resistance levels mentioned above have been achieved, the focus now shifts towards 126.84, the April high. The only resistance level between Thursday's close and 126.84 is 126.38, the upper 2 percent trading band. Set-backs in the meantime have minor support at 124.15/123.79. A decline below 123.79 would suggest that a deeper correction is underway toward 122.28, the 38.2 percent retracement of the advance from 118.30."

JIM CHOREK, TECHNICAL ANALYST, CHOREK.COM:
EURO/DOLLAR: "The recovery from the $0.8427 comes on back of the bottoming one week cycle, but it shows a lack of upward momentum. Hourly indicators are slowly recovering from slightly oversold territory, but once they are back in the neutral zone, the bear will likely resume. Initial resistance is at $0.8516 (38.2 percent of $0.8659-0.8427), but only a move above $0.8570 (61.8 percent) would signal a notable bullish reversal. Until then, the next big move should be lower, but the dominant short-term cycle says we'll probably have to wait till the early part of next week for a selloff."
DOLLAR/SWISS FRANC: "Action from the 1.8030 is corrective and will probably hold above the 1.7855 support. It marks the 38.2 percent retracement of the 1.7571-1.8030 rally. Only a move below 1.7746 (61.8 percent) would jeopardize the case for a nearby move above the 1.8075 wave A high."
STERLING/DOLLAR: "The pullback from $1.4227 came to within one pip of the $1.4026 (61.8 percent of $1.3902-1.4227) support. Penetration there is a matter of time and will aim the wave (ii) correction from $1.4227 at the $1.3902 (wave iv low) to $1.3888 (61.8 percent of $1.3678-1.4227) support. A major bottom should form in this area, fueling a sharp advance in wave (iii)."
DOLLAR/YEN: "The 124.98 yen high probably marks the top of wave (.v) of (.5). It therefore completes the wave (i) rally from 118.26. Penetration of the 123.89 (61.8 percent of 123.22-124.98) support is the first sign of a notable corrective force underway. Now we need to see a break of 123.22 (wave .iv low) before we can confidently label action from 124.98 as a developing wave (ii) correction. Looking ahead, the ideal target for wave (ii) is in the 120.83 (61.8 percent of wave i) to 120.79 (previous wave .4 low) area. Look for a major bottom there that will fuel a return of the big bull trend in the wave iii position.