CITIFX TECHNICALS BULLETIN, CITIBANK, NEW YORK:
DOLLAR/SWISS FRANC: "The technical picture on dollar/Swiss franc, which has built up in the last 3 weeks, looks very ominous indeed. We may well have fully completed a five wave sequence up from the Oct. 1998 low (near 1.27 francs), with a failed fifth wave not making a new high. What makes us think this?
1. We failed to make a new high.
2. In the week ending July 6 we had a gravestone doji pattern (this is very bearish as it comes at the high of the move from the start of this year).This was compounded the following week with a bearish engulfing week.
3. We are sitting on the 55 week moving average (1.7179) with the 200 week moving average standing at 1.5630. This is almost identical to the picture in July 1998. A weekly close below this 55 week would suggest an acceleration to the 200 week.
4. If we close the month below 1.7580 we will have a bearish monthly reversal at pretty much the high of the 5 year move."

DAVID SOLIN, PARTNER, FOREIGN EXCHANGE ANALYTICS, ESSEX, CONNECTICUT:
STERLING/YEN: "Sterling/yen may be forming a month long head and shoulders pattern within a larger six month pattern and suggests weakness to last week's 173.65/85 yen low with 171.75/90 yen (50 percent from the June low at 165.25 yen) and even a retest of the larger pattern's neckline (currently at 166.10/25 yen) after. Looks like a good risk/reward sell area with a clear break and acceleration past July 8 high at 178.00/15 yen putting this bear view on hold (limited risk)."

JOSEPH KLETTNER, TECHNICAL ANALYST, COMMERZBANK:
EURO/DOLLAR: "Tuesday's late rally from $0.8491 through resistance at .8544/80 gave us our first indication that the decline from .8642 had bottomed. Since then, the short and medium-term outlook has turned increasingly bullish for the euro when the advance rallied through the late June double tops at .8673 which represented the last key pivot on both the 3-day and weekly swing charts. The rally through .8673 was the first higher high on the weekly swing chart since .9595, the January peak. Rallies through here have confirmed the July 6 low of .8350 as an important bottom. Further strength on Friday could test initial resistance at .8790/.8825, the resistance of the upper 2 percent trading band and the 38.2 percent retracement of the decline from the January high of .9595. This area could temporarily slow the euro advance in the next few days. However, if the euro sees a correction, we would suspect that support at .8636/00 will hold any weakness before the advance from .8350, the July 6 low, resumes."
DOLLAR/YEN: "Trade recommendation:The decline into the June 1 low of 118.30 yen completed a 3-step a-b-c consolidation from 126.84, the April high. The rally to 126.15 (on July 6) from 118.30 saw the dollar do some constructive things by rallying through all the key short and medium-term pivot levels as well as retracements which should maintain the dollar bullish direction over the next few months. During that advance from 118.30, we've seen the market trace out 5 waves to the upside into July's high of 126.15 from where an a-b-c wave 2 pullback commenced. Wave-c in that correction began from the July 17 high of 125.67. Wave-c decline from 125.67 should unfold in 5 waves before it bottoms. Waves 4 and 5 may still be required in the wave pat-tern from 125.67 before a bottom develops. Once wave-c is complete, we would expect it to bottom before 121.29, the 61.8 percent retracement of the advance from 118.30. Just before here, we see additional support at 122.22 and 121.75. These levels represent the 50 percent retracement and where the lower 2 percent trading band will be at Friday's opening. Resistance in the meantime is at 124.44/80.