LONDON, Sept 20 - Following is a selection of comments from analysts on important technical developments in the foreign exchange market.
ANALYSTS AT HSBC
* EURO/DOLLAR: "Still find it difficult to give up our view of a selloff in the euro. The $0.9335 high was not broken yesterday and the euro is yet to close above $0.9300 (Fibonacci resistance). Also both daily stochastics and relative strength index are highly overbought and continue to display bearish divergences. Momentum too is euro negative. Immediate resistance for today at $0.9295 and immediate support at $0.9240. A break of this level will be the first sign of a selloff to crucial support at $0.9170."
* DOLLAR/YEN: "Yesterday we had recommended buying the dollar only on a break of 118.30. The dollar rallied to 118.15 on the back of intervention before falling back to 117.13. We continue to trade in a triangle formation with support and resistance at 117.20 and 118.00 respectively...Any selloff is likely to be shortlived. For today, buy the dollar on dips to 117.20."
* STERLING/DOLLAR: "A close below mid-bollinger support and trendline support at $1.4630 would open the way for a test of 365-daily moving average support at $1.4560 and $1.4530 (Fibonacci support). The $1.4400 level is crucial support (200 daily moving average) and as long as cable does not close below that, once the corrective selloff is over, the uptrend should resume."
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BRIAN KIELY, CHIEF TECHNICAL STRATEGIST, RBS
* DOLLAR/YEN: "The 117.50 level is a really crucial area in the market longer term. This year we've been dominated by a potential double top in dollar/yen and it's the 117.50-60 area which marks the trigger region for that top. And the consequences are that we could push very much below the teens in dollar/yen. Our core target has been 115. Generally the market really has plenty of reasons to go on the downside."
* EURO/DOLLAR: "We've just turned neutral on euro/dollar. We had been bearish. We've had very much euphoria at the upper end of the range. At the start of January we were in the $0.95-92 area and as the year's gone through we've been looking at the lower end of the range at $0.80. We think the market is going to begin to struggle at the upper end of the range. On a day-to-day basis it's looking a little heavy."
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TECHNICAL ANALYSTS AT CAPITAL MANAGEMENT
* EURO/STERLING: "The rally is losing momentum as it approaches the 63.70 high. Although there is still a window to power through both 63.70 and 64.50, caution suggests exiting longs for a pullback to 62.50-70 first. Rebuy this drop or 63.80 with stops at 62.10.
* DOLLAR/SWISS FRANC: "Short-term risk remains for a retest of 1.5980 resistance to signal a recovery to 1.6090 with potential for 1.6160-90."
* AUSTRALIAN DOLLAR/U.S. DOLLAR: "The decline continues to ratchet lower but should soon finish the strongest part of a decline from the US$0.5225 level. Exit shorts on this dip and look to resell a rally back to the US$0.5020 level for a full test of the low at US$0.4770."