Emirates FX

Research Desk


18th April 2005

Monday



Daily Support & Resistance levels:




Levels








EUR/USD







GBP/USD
Resistance 3




1.3138









1.9182
Resistance 2




1.3041









1.9067
Resistance 1




1.2971









1.8999
Pivot Point





1.2874









1.8884
Support 1






1.2804









1.8816
Support 2






1.2707









1.8701
Support 3






1.2637









1.8633
Trend (Long-Term) Upwards







Upwards


Yet another reversal for Cable and Euro, as both the pairs rallied to close the week above 1.2850 and 1.8850, after a major sell-off on Thursday.

Cable: Since the low on 28th march (1.8592), cable has been forming consistent higher-highs and Lower-lows together with bullish reversals on 8th April & 15th April. This process confirms our long-term bullishness on cable, furthermore daily candle opened above 10-SMA along with weekly stochastic curving upwards. For today allow more work between first support & resistance level and later in this week we should see cable back above 1.9000.

Euro: Since the low on 28th march (1.2855), Euro skimmed down only 90 pips to form another low on 14th April (1.2765); which threatened further losses in euro. But the bullish reversal on 15th April confirmed the long-term bullishness of euro. For today allow more work between 1.2850 and first resistance level and later in this week, with weekly stochastic curving from oversold region, we should see euro back above 1.3000.



Fundamentally speaking, the entire attention center’s on tomorrow`s US PPI, and Wednesday`s CPI. As it could be a case of Buy the rumor, sell the fact, given what we have seen over the last week or so.






Market Range:



EUR/USD

1.2700-Support, Buy the bounce & Sell the break

1.3000-Resistance, Buy the break & Sell the bounce

GBP/USD:

1.8700-Support, Buy the bounce & Sell the break.

1.9000-Resistance, Buy the break & Sell the Bounce.








Economic Calendar:



Date/Time (Local)

Loc


Description

















Forecast



Previous

18/04/2005 09:00

EU(12) Harmonized CPI (March) final




--








0.3%

18/04/2005 09:00

EU(12) Harmonized CPI (March) final Y/Y

2.1%





2.1%

18/04/2005 09:00

EU(12) Harmonized CPI excluding energy

--







1.5%















(March) Y/Y



Hemendra A.Ghaghada
Emirates FX L.L.C. - Chief Trading Analyst
P. O. Box: 114211, Dubai
Tel: +971-4-33 400 90
Fax: +971-4-33 448 28
Email: hemendra@emiratesfx.ae

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Author: Emirates FX
posted by FXTrader.net