Research Desk


6th May 2005

Friday



Daily Support & Resistance levels:




Levels
EUR/USD
GBP/USD

Resistance 3
1.3061
1.9186

Resistance 2
1.3027
1.9133

Resistance 1
1.2993
1.9101

Pivot Point
1.2959
1.9048

Support 1
1.2925
1.9016

Support 2
1.2891
1.8963

Support 3
1.2857
1.8931

Trend (Long-Term)
Upwards
Upwards









Awaiting Non-farm numbers…while Cable gives-up ground against USD and Euro in a tight range



Euro is rangy between 1.2900 and 1.3000, one of this levels should be taken today after the release of the data. Last few months we saw Euro reacting to the change in unemployment rate, hence it would be important to note any change in the unemployment rate (no change is expected this month…5.2%).There is a risk to the downside due to a rejection on daily charts shown by a spike higher. GBP weakened due to Labor’s rather poor showing in the UK elections yesterday. The slim majority will mean uncertainty for GBP for at least the short term, as the idea is that the new government will be less able to push through new policies - an ineffective government is not good for a nation`s currency.1.8900 provides a support and 1.9100 is seen as a level of resistance.
















Market Range:



EUR/USD

1.2900-Support, Buy the bounce & Sell the break

1.3000-Resistance, Buy the break & Sell the bounce

GBP/USD:

1.8900-Support, Buy the bounce & Sell the break.

1.9100-Resistance, Buy the break & Sell the Bounce.
















Economic Calendar:



Date/Time (NYT)
Loc
Description
Forecast
Previous





5/6 08:30
US
Non-farm Payrolls
100K
110K

5/6 08:30
US
Apr Unemployment Rate
5.2%
5.2%

5/6 08:30
US
Apr Average Hourly Earnings
0.2%
0.3%





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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