Resistance 3: $1.3300
Resistance 2: $1.3110
Resistance 1: $1.3040
Current price: $1.2797
Support 1: $1.2680
Support 2: $1.2530
Support 3: $1.2330
Comments: Gains in the euro, which gained support against the dollar on
euro-yen rise, may be curbed after European Central Bank President Jean
Claude-Trichet yesterday said that he can't rule out a further
reduction in interest rates next month. Besides, any losses in the
dollar likely
be limited on speculation U.S. investors will repatriate funds held in
overseas stocks and bonds on concern the global economy will slow
further. Closest resistance is $1.3040 ( 21DMA,
and upper bound of the triangle) and sustained break above will lead to
retest of November 5 high at $1.3110/20 . October 30 peak $1.3300
(38.2% of the $1.4860
decline) remains pivotal resistance. Closest support is the lower bound of the continuation triangle
pattern currently around $1.2680/85. Further down rests Nov 4 low
$1.2530.October 27 and 28 lows at $1.2330 area remain the key target.