Fri, Feb 29, 2008 - Page 12 News List

NT dollar may pass 30.26 against greenback: Goldman

BLOOMBERG

The New Taiwan dollar may extend its advance to more than a seven-year high of NT$30.26 against the US dollar after rising above NT$31.27 this week, said Kevin Edgeley, a technical analyst at Goldman Sachs Group yesterday.

Support at NT$31.27 was the greenback's low versus the NT dollar in May 2006, Goldman's chart showed. Support is a level where buy orders may be clustered.

"We expect the trend to continue to the 2000 low at NT$30.26," said London-based Edgeley in a research note.

The NT dollar rose to NT$30.90 versus the US dollar before closing at NT$30.929 on Wednesday -- the strongest since March 2005, Taipei Forex Inc statistics showed. Local financial markets were closed yesterday because of a public holiday. The NT$30.26 level represents the April 2000 low, based on data compiled by Bloomberg.

Daily, weekly and monthly technical indicators such as the stochastic oscillator charts and Goldman's so-called "Trend Strength Indicator" reinforce the "bearish bias" for the US currency against Taiwan's, Edgeley wrote. The NT dollar is the second-best performer among the currencies of Asia's 17 largest economies versus the US dollar this month.

The stochastic oscillator chart measures the closing price of a security relative to its highs and lows during a certain period to try to predict whether it will rise or fall.

In technical analysis, investors and analysts study charts of trading patterns and prices to forecast changes in a security, commodity, currency or index.

This story has been viewed 2783 times.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top