3 December 2001, 12:27  : TECHNICALS-Forex market outlook and key levels

TECHNICAL ANALYSIS TEAM, LEHMAN BROTHERS
* EURO/DOLLAR: "The euro stages a sharp rally on Friday, but ends the day just under the September trendline, $0.8980. We look for a break higher into next week, buy weakness into $0.8895. We will raise stops to $0.8830. Over $0.8980 triggers a new breakout, targets remain at the upper Bollinger band, now $0.9165."
* DOLLAR/SWISS FRANC: "The franc completed a large bearish outside reversal on Friday, closing under the September channel low, 1.6430/50. Stay short/sell rallies into here. We will lower stops to 1.6640. Next target/support is at the Nov low and 62 percent retracement of the September rally, 1.6130-1.6095. Expect new buying here. However, we will now revise targets lower, to the yearly low, 1.5675."
* STERLING/DOLLAR: "The consolidation above $1.4175 is bullish, stay long/buy weakness into here. Stops remain at $1.4135. Targets remain at October channel top, $1.4400-1.4545."

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