Research Desk


21st June 2005

Tuesday



Daily Support & Resistance levels:




Levels
EUR/USD
GBP/USD

Resistance 3
1.2349
1.8374

Resistance 2
1.2298
1.8333

Resistance 1
1.2226
1.8291

Pivot Point
1.2175
1.8250

Support 1
1.2103
1.8208

Support 2
1.2052
1.8167

Support 3
1.1980
1.8125

Trend (Long-Term)
Upwards
Upwards

Trend (Current)
Downwards-Below 1.2600
Downwards-Below 1.8800


Risk on the downside again as Euro gave up on 1.2200…

Euro fell sharply below 1.2200 yesterday after the report that ECB would contemplate rate cut if the upcoming data warranted. The negative US leading indicators were ignored as Cable also gave up much of it gains but held firm above 1.8200.Hence,caution is required as the markets decide where we go to from here. The range is now 1.2000 – 1.2300 for Euro and 1.8000-1.8300 for Cable and we need to move outside this consolidation zone to determine the next major move.


















*Economic Calendar:



Date/Time (NYT)
Loc
Description
Forecast
Previous





6/21 05:00
GER
June ZEW Econ Expectations Index
17.0
14.8

6/21 05:00
GER
June ZEW Current Situation Index
-67.0
-69.3

6/21 05:00
GER
June ZEW Econ Sentiment Index
18.0
13.9





*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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