Research Desk


30th May 2005

Monday



Daily Support & Resistance levels:




Levels
EUR/USD
GBP/USD

Resistance 3
1.2700
1.8363

Resistance 2
1.2647
1.8320

Resistance 1
1.2613
1.9282

Pivot Point
1.2560
1.8239

Support 1
1.2526
1.8201

Support 2
1.2473
1.8158

Support 3
1.2439
1.8120

Trend (Long-Term)
Upwards
Upwards

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







Calm start for the week…as the traders in US and UK enjoy a day off



Last week’s market action could be summarized as classic “lower highs-lower lows”, as both Euro and Cable continued further sell-off and managed fresh yearly low despite of daily stochastic being oversold and market being over-positioned since the first week of May. Both the pairs did try and gain ground against the Greenback but were dejected by major event risks such as French referendum on EU constitution and Comments by major Fed Officials.



The market was positioned for a “no” vote on EU constitution and no surprise so far as France votes "no" by a margin of 55 to 45 percent on EU constitution referendum. The pressure from Fed is limited now as they have made it clear that they intend to stick to measured pace for some time to come. The focus now turns to US data with the upcoming US employment data on Friday along with US Chicago PMI, US Consumer Confidence and US ISM Manufacturing. I believe there will be some profit-taking for USD bulls ahead of non-farm numbers.



The key support for Euro is around 1.2490 with resistance at 1.2600. Cable should hold 1.8190 support and resist around 1.8325. Today is holiday for the UK- Spring Bank holiday and the US- Memorial Day so markets may be a bit edgy until tomorrow`s trading session.



*Economic Calendar:



Date/Time (NYT)
Loc
Description
Forecast
Previous





NO MAJOR FUNDAMENTAL NEWS TODAY: MARKET HOLIDAY FOR US AND UK



*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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