Monday June 26, 2006 - 07:27:47 GMT
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ACM - www.ac-markets.com
Daily Technicals: Dollar should correct from the top
by Marc Spaelti
EURUSD: The Dollar ended the week with a test of the 1.2470 key support, so far this held, but it will again be the key support to watch today. Presently at 1.2515, we have broken the steep, very-short-term bearish trend developed since Thursday, with strong initial support at 1.2500 trading the EURUSD long seems the better option. Initial resistance 1.2535, stronger 1.2580 and 3-week bearish trend-line at 1.2630. A daily close above this bullish for the week.
GBPUSD: Cable fully exploited the downside when it fell to 1.8140 on Friday, this should be a very strong support today, initial support at 1.8170. Cable should attempt a correction, initial resistance 1.8230, once by-passed, there is space up to 1.8350 with minor resistance at 1.8285 on the way up. A break to the downside and daily close underneath of 1.8140 will trigger a test of 1.8065 and has potential for 1.7930 this week.
USDJPY: No correction on Friday, the Dollar instead rose to a new high of 116.60. The pair remains overbought, we expect a 1 or 2-Yen correction from these tops to fall back to strong support 114.65, minor support at 116.10, 115.70 and 115.20 on the way lower. Strong resistance 116.60, next 117.10.
USDCHF: The Dollar spiked to 1.2530 on Friday and closed the week right around key resistance 1.2470. Monitoring USDCHF closely together with the EURUSD, we noticed that the â€˜cross-overâ€™ point was not breeched and we expect the Dollar bull-run to run out and correct from here. Initial support 1.2460, 1.2420 next and space to fall to 1.2335 strong support. Strong resistance 1.2500 and 1.2530 should top it, a daily close above that points to 1.28 next.
@09.00GMT US Durable Goods May
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