Research Desk


18th May 2005

Wednesday



Daily Support & Resistance levels:




Levels
EUR/USD
GBP/USD

Resistance 3
1.2726
1.8513

Resistance 2
1.2696
1.8471

Resistance 1
1.2652
1.8404

Pivot Point
1.2622
1.8362

Support 1
1.2578
1.8295

Support 2
1.2548
1.8253

Support 3
1.2504
1.8186

Trend (Long-Term)
Upwards
Upwards

Trend (Current)
Downwards-Below 1.3000
Downwards-Below 1.8900







US housing Starts & PPI didn’t move the markets…..Greenback still strong.






The US PPI (0.6%) and Housing starts ($2.03 million) data came in well above forecast, but market reacted indifferent to this numbers, maybe the drop in oil and commodity prices makes the inflation numbers less bothersome for the market. The CPI (due today) may not move the markets either as this market maybe more technical then fundamental.



Technically, the dollar has propelled higher, and the euro is still trying to form a base at 1.2600 – so far not too convincingly. Longer term, we need to break and hold above 1.2800 and then 1.3000 before we can bet that the recent decline in the euro is probably over. As for GBP, the BOE minutes today could be a turning point event on whether GBP will finally find some support or whether the selling will continue. I believe there is a short-term support on the cards.













*Economic Calendar:



Date/Time (NYT)
Loc
Description
Forecast
Previous





5/18 08:30
US
Apr CPI
0.4%
0.6%

5/18 08:30
US
Apr Core CPI
0.2%
0.4%

5/18 04:30
UK
Apr Change in Unemployment
2.5 K
11.0 K

5/18 04:30
UK
Mar Average Hourly Earnings 3m y/y
4.3%
4.3%

5/18 04:30
UK
Bank of England MPC Minutes
9-0
9-0

5/18 04:30
UK
Apr Unemployment Rate
2.7%
2.7%





*Source: forexnews.com



Hemendra A.Ghaghada
Emirates FX L.L.C. - Chief Trading Analyst
P. O. Box: 114211, Dubai
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Email: hemendra@emiratesfx.ae

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