Thursday May 18, 2006 - 06:55:47 GMT
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ACM - www.ac-markets.com
Daily Technicals: Cable has also broken its bullish trend
by Marc Spaelti
EURUSD: After a brief spike to 1.2920, EURUSD slipped and the expected correction set in, a low of 1.2705 traded, on the day the 1.2735 support held, itâ€™s the initial support today. Outlook for today is very neutral, expect to trade in small ranges 1.2735/1.2765, on top there is space to rise back to 1.28 or even 1.2850, but the 1.2895 key resistance is unlikely to get a re-test for now. Below, breaking 1.2735 can see it trade 1.2700 and eventually continue to 1.2655, key support. Further descent to 1.2600 is possible but unlikely.
GBPUSD: A spike saw cable rise through 1.90, the bulls joy was short-lived as the pair turned, fell more than 2 cents and broke the bullish trend soon after. Strong support at 1.8775 and another at 1.8700 should keep the pair at high levels, with resistance at 1.8885 and 1.8910 the next 24hâ€™s range is set. Starting with a bearish bias, expect to re-test the 1.8775 low, maybe widen this, but expect to return to 1.8850 later in the day.
USDJPY: It did manage a low of 109.00 before turning to rally strongly to its medium-term bearish trend-line above 111. This bearish line, currently at 110.90 is a strong initial resistance, while underneath the pair can back down to near 110, minor support 110.60 and 110.30. A rise back above 111, should further the high to 111.55, key resistance. A daily close above that level ends the bear move and the pair could correct towards 113.50 next week.
USDCHF: The 1.2000 level held firm, the Dollar started to correct and has reached a high of 1.2190 so far. Strong initial support 1.2130, bullish while above we look to continue this correction up to the 1.2260 key resistance, medium-term bearish trend is at 1.2320, sell any short-term long positions ahead of that. To the downside a dip through 1.2130 risks a return to 1.2090 or as low as 1.2040, a daily close underneath of that stops the recovery and turns us bearish for Friday.
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