Research Desk


20th May 2005

Friday



Daily Support & Resistance levels:




Levels
EUR/USD
GBP/USD

Resistance 3
1.2779
1.8536

Resistance 2
1.2736
1.8487

Resistance 1
1.2688
1.8419

Pivot Point
1.2645
1.8370

Support 1
1.2597
1.8302

Support 2
1.2554
1.8253

Support 3
1.2506
1.8185

Trend (Long-Term)
Upwards
Upwards

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












The USD firmed up slightly overnight, despite a mixed bag of data, suggesting a further slowdown in manufacturing. I think this represents a great opportunity to get short the USD, with Euro forming a clear base around 1.2600 and cable supported by 1.8300. Hence, if the pairs can close the week substantially above the supports, we have a corrective rally till 1.2800 for Euro and 1.2650 for Cable. Asian trade today was largely monotonous, and with no major economic data due out in the US today, I believe the same will go for the European and New York sessions.































*Economic Calendar:



Date/Time (NYT)
Loc
Description
Forecast
Previous





5/20 18:30
US
Fed Governor Kohn Speaks
-- --
-- --

5/20 12:30
US
Fed Chairman Greenspan Speaks
-- --
-- --





*Source: forexnews.com



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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