At the beginning of December 1995 dollar/DM broke above 1.4435. But the resistance at 1.4580 proved to be too strong. The subsequent retracement from this area helped to build uptrend pressure. Another assault on the upside is possible.
In January a break above the 1.4545/80 zone is likely to trigger a rally to 1.5045 with the medium term objective of 1.56/1.58.
Dips will find support in the 1.428/65 band.
Recommendation Hold longs and add on dips to 1.4340/00. Keep the stop/reverse below 1.4265/60. Cover longs on rallies to 1.4545/1.48.
Loss of 1.4265 will indicate a correction towards the 1.40/1.38 area. Reinstate longs here, stop/reverse below 1.37—for 1.3455.
USD/DEM technical commentary (31 JAN—01 MAR 96) 31 Jan 96 Dollar/DM keeps entrenched within the recent consolidation range. Immediate upside pressure is intact. Further consolidation within the range is not out of the question. Near term support for dips is centered on the 1.4850 pivot. A test of the 1.4935/40 peak may be triggered by a break above 1.4915.
01 Feb. 96 Pressure is preserved on the upside. If good support
ei
to retrace
— âîçâðàùàòüñÿ
assault
— àòàêà, øòóðì
i: ei
to reinstate
— âîññòàíàâëèâàòü
e
to entrench
— çàêðåïèòüñÿ
ou
to provoke
— âûçâàòü
ei
to sustain
— ïîääåðæàòü
ë
vulnerable
— óÿçâèìûé
