Wednesday May 17, 2006 - 06:24:57 GMT
Share This Story
ACM - www.ac-markets.com
Daily Technicals: Euro is a short-term sell
by Marc Spaelti
EURUSD: The correction slowed and the Euro recovered back to a high of 1.2880, all along it kept in tight ranges just underneath the old bullish support and has so far not tried the 1.2895 resistance, key for a move beyond 1.30. For the day, suggest selling tops here, the pair has only minor support at 1.2830 and could dip to 1.2780, first strong support lower at 1.2735, key support unchanged at 1.2655. Turn upon a break of 1.2900, a daily close above that is very bullish, indicating that we will again make new highs above 1.30 at the end of this week.
GBPUSD: It was only a brief scratch, but the bullish trend held and Cable is up more than 1 cent overnight to top 1.8930, minor rising support at 1.8900, strong support 1.8885, medium-term bullish trend-line has moved to 1.8825. There is space to move on to 1.8960, expect sellers to be lined up from there up to 1.9000 making further progress very difficult. None-the-less remains the possibility of an explosive move through 1.90, carrying the pair up to 1.9150ish in a rash move. On the downside, breeching the trend will set-up a sideways-movement in a 1.8650-1.8950 range.
USDJPY: Tripple-bottoms do not exist, this morning the 109.35 low of may 12&15th was repeated, expect the Dollar to remain under pressure to at least push this low a tad further but 109.20 remains the key support for the day. A break can see the pair plunge to a max low of 108.20 intra-day, support at 108.85 and 108.50 on the way down. Initial bearish resistance at 109.50, strong resistance 109.85, while the two hold we remain bearish, a daily close above 110 is bullish for 111.50 next, with minor resistance 110.30 and 110.60 on the way up.
USDCHF: Mostly in small range, the dollar lost some ground at the end of the night to fall to 1.2040. Initial resistance 1.2060, expect to dip to 1.2000 in European morning, before we run into strong support with buyers down to the 1.1960 low that will probably hold the day. If that 1.2000 support survives the day, outlook until Friday will be for further Dollar recovery, there is lots of space up to the 1.2260 level and bearish trend-line is even higher at 1.2330.
@08:30GMT UK Unemployment April
@09:00GMT Euroland CPI March
@12:30GMT US CPI April
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."