Research Desk


25th May 2005

Wednesday



Daily Support & Resistance levels:




Levels
EUR/USD
GBP/USD

Resistance 3
1.2704
1.8438

Resistance 2
1.2669
1.8400

Resistance 1
1.2626
1.9337

Pivot Point
1.2591
1.8299

Support 1
1.2548
1.8236

Support 2
1.2513
1.8198

Support 3
1.2470
1.8135

Trend (Long-Term)
Upwards
Upwards

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










Another uneventful session overnight, as the Fed minutes failed to surprise. Attention now turns to Thursday’s US GDP Revision. FOMC minutes did show that Fed focused on inflation and generally not worried about the recent weakness in economic data. They are with general agreement that inflationary pressures might ease going into 2006.This suggests a halt in further rate hikes sooner than expected if the "soft patch" continues.



However, on the trading front Euro and Cable are still holding above there respective base (1.2500 & 1.8200).Markets are range bound, hence our corrective target remains at 76.4% Fibonacci level for both the pairs.


























*Economic Calendar:



Date/Time (NYT)
Loc
Description
Forecast
Previous





5/25 12:30
US
Atlanta Fed President Guynn speech
--
--

5/25 10:00
US
April New Home Sales (thousands)
1,335
1,431

5/25 10:00
US
Fed Board Governor Bernanke Senate Testimony
--
--

5/25 08:30
US
April Durable Goods
1.2
-2.3

5/25 04:00
GER
May IFO Business Climate Survey
93.4
93.3





*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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