Research Desk


26th May 2005

Thursday



Daily Support & Resistance levels:




Levels
EUR/USD
GBP/USD

Resistance 3
1.2702
1.8445

Resistance 2
1.2662
1.8392

Resistance 1
1.2631
1.9354

Pivot Point
1.2591
1.8301

Support 1
1.2560
1.8263

Support 2
1.2520
1.8210

Support 3
1.2489
1.8172

Trend (Long-Term)
Upwards
Upwards

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







Limited Gains by both the pairs…risk on the downside



Euro and Cable did gain some ground against the greenback on weak Durable goods report, However the gains were limited and hence risk on the downside is higher this mourning. The market lacks direction since the beginning of this week due to major event risks, one of them being Sunday`s referendum on the EU constitution. The crazy market range is likely to continue and even if the pairs break lower (which is likely), we can’t be sure that it will hold for long. Watch out for Tonight’s US GDP second revision as traders look for any evidence, or lack of the suspected “soft patch” in the US economy and CBI Industrial Trends Survey in the UK should provide some fuel for Cable.
















*Economic Calendar:



Date/Time (NYT)
Loc
Description
Forecast
Previous





5/26 13:00
US
Chicago Fed President Moskow speech
--
--

5/26 10:50
US
Fed Board Governor Gramlich speech
--
--

5/26 08:30
US
Q1 preliminary GDP
3.7%
3.1%

5/26 08:30
US
Q1 preliminary Personal Consumption
3.5%
3.5%

5/26 08:30
US
Weekly Jobless Claims
325K
321K

5/26 08:00
US
Atlanta Fed President Guynn speech
--
--





*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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