LONDON, Sept 3 - Following is a selection of comments from analysts on important technical developments in the foreign exchange market.
KAREN JONES, TECHNICAL ANALYST, COMMERZBANK, LONDON:
* EURO/DOLLAR: "Despite the increasingly volatile intra-day sessions we continue to view the market as corrective only. The euro will hold upside potential while above 0.9050/30, the recent low and the intersection of the short term support line.
"Rallies will find interim resistance at 0.9125 ahead of 0.9240/55 which remains key. Only failure to hold 0.9030 will trigger a deeper correction back to 0.8900 and possibly 0.8825/0.8790 prior to recovery.
* DOLLAR/YEN: "The break below 119.00 proved short lived, however while rallies are capped by 119.40/45, the market remains under near term pressure. There is scope for losses to test the 118.25/June low and then 117.20/116.70, however this is the maximum amount on the downside that we expect to see prior recovery.
* DOLLAR/SWISS FRANC: "Then dollar is sidelined/corrective near term but viewed as under pressure while rallies are capped by 1.6860. Ahead of here we have interim resistance at 1.6725 and we remain wary of failure in this 1.6725/1.6860 band for a slide back to 1.6565 then the 1.6450/00 supports. These will act as the major break down point short term to 1.5900."
* EURO/STERLING: "The euro remains sidelined. We suspect the market is attempting to resume its upmove and view the downside as limited. Minor support lies at 0.6240 and the market is expected to remain contained by 0.6225/00 (double Fibonacci retracement and 200 day moving average). A rally above 0.6305 is needed to trigger recovery to 0.6335 then the recent high at 0.6365."
* STERLING/DOLLAR: "Sterling has failed at 1.4620 but has so far held over nearby support at 1.4480/55 - while this holds scope will remain to recover back towards last week's highs of 1.4620 and then the top of the upchannel at 1.4705."
* EURO/YEN: "The euro on Friday broke into three week lows - it is under pressure short term but should find major support at 107.60/50 with 106.75/50 below there expected to contain the downside. We note that the 100 day and the 200 day moving averages also lie at 107.19 and 107.12. This is reinforced by 106.50, the 38.2 percent retracement of the move from 99.85 to 110.65. Rallies will find interim resistance at 108.45/60."