RAYNARD CHENG, TECHNICAL ANALYST, CFSB, LONDON:
EURO/DOLLAR:
"Unless we see a quick recovery above $0.8985/.9005, more selling can be expected in the coming days to push the market lower in an effort to search for buyers. 200-day moving average seen at $0.8927 and chart supports are placed at $0.8925/05 and $0.8885/70. Medium term buyers are waiting below at the September low at $0.8825. Still look for a broad $0.88/$0.92 medium term sideways range to unfold. On the topside, a break above $0.9005 will remove immediate downside threat for a recovery to $0.9055/80 and then $0.9105/20 (September downtrend). Staying in between 40/200-day moving averages at $0.8927 and $0.9097 suggests a trendless environment."
DOLLAR/YEN:
"Short term trend remains neutral as the 121.35 near term support continues to hold. Below 121.35 (not favoured) will see 200-day moving average at 121.24 and minor chart support at 120.80, ahead of the 38.2 percent retracement level at 120.45 - where medium term buyers expected. Small seller at 122.10. Above 122.65 will attract fresh short term buyers for a retest of the 123.35 recent high. Medium term trend stays up for a 125.20/126.85 rally, as long as the 120.45 support holds. Moving average signal remains positive as the market stays above 40/200-day moving averages at 120.25 and 121.26."