Daily Forecast - 26 May 2015
GBPUSD
GBPUSD first support at last week's lows at 1.5455/45 as we become oversold short term, but longs need stops below 1.5425. Be ready to go with a break lower to target support at 1.5370/65 then support at 1.5340/35. A good chance of a low for the day. Buy @1.5340/35, stop 1.5305. Target 1 @1.5365 (trail stop to entry), target 2 @1.5390.
First resistance at 1.5530/35. Sell here, stop 1.5565. Target 1 @1.5485 (trail stop to entry), target 2 @1.5460. Next resistance at 1.5580/85. Sell here, stop 1.5620. Target 1 @1.5540 (trail stop to entry), target 2 @1.5490.
EURUSD Spot
EURUSD minor resistance at 1.1005/10 but above here could target resistance at 1.1080/85. Sell here, stop 1.1105. Target 1 @1.1060 (trail stop to entry), target 2 @1.1040, target 3@ 1.1010. However be ready to go with a break above 1.1085 to target the next resistance at 1.1155, sell here stop 1.1185. Target 1 @1.1125 (trail stop to entry), target 2 @1.1095.
Failure to beat minor resistance at 1.1005/10 keeps the pressure on for a move towards first support at 1.0955 & we are oversold but there is better support at 1.0925/20. Buy small longs, stop 1.0895. Target 1 @1.0950 (trail stop to entry), target 2 @1.0990. A break below 1.0925/20 however targets support at 1.0875. Buy here, stop 1.0850. Target 1 @ 1.0900(trail stop to entry), target 2 @1.0920 (but we could continue higher).
Dax June contract
Dax running out of steam as we become overbought. Risks of profit taking grow & failure to beat 11,840/830 retests first support at 11,780/770. Less chance this will hold today so be ready to go with a break lower to target support at 11,735/730. We could try just small longs with stops below 11,690. We then meet strong support at 11,670/660. Buy here, stop 11,620. Target 1 @11,720 (trail stop to entry), target 2 @11,760.
First resistance at 11,890/11,900 has held for 4 days & we should struggle here again today! However a break higher not out of the question so be ready to target 11,935/940. Gains are likely to be more limited in overbought conditions but if we continue higher look for resistance at 11,980/990, perhaps as far as late April highs of 12,085/12,113.
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