Daily Technical Analysis

EUR: Attempt longs at 1.5560, adding to 1.5500

Tue, May 13 2008, 06:44 GMT
by Nicole Elliott

Mizuho Corporate Bank


EUR

Comment: Moving up slowly towards 1.5555/1.5600, as expected. Short-covering could easily take us up to 1.5700 over the next few days and would probably shake the complacent.

Strategy: Attempt longs at 1.5560, adding to 1.5500; stop below 1.5360. Short term target 1.5590, then 1.5650/1.5700.


EUR/JPY

Comment: Watch for stalling against the 162.00 area this morning. If not today then later this week prices should drift back down to 159.00.

Strategy: Sell at 161.40; stop above 162.25. Short term target 159.50 then 158.35, probably 156.00 by the end of the month.


GBPGBP

Comment: Trying hard but could do just a bit better. A ‘bullish engulfing’ candle yesterday gives a hint as to what could be if momentum were bullish. Expect another attempt at a rally today. Wait and watch for a reversal pattern on the weekly chart.

Strategy: Attempt longs at 1.9540; stop below 1.9400. Short term target 1.9625, eventually 1.9800.


JPY

Comment: Consolidating between the 9-day and 26-day averages, below the immediate trendline and above a decent-sized ‘cloud’. Expect more of the same this morning with an initial upside probe fizzling out between 104.00 and 104.50 by lunch time. Then drifting very slowly lower.

Strategy: Sell at 103.75, adding to 104.15; stop above 105.00. Short term target 103.00/102.75, eventually 101.50.

Published on  Tue, May 13 2008, 06:51 GMT

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Mizuho Corporate Bank  | 1-3-3, Marunouchi, Chiyoda-ku, Tokyo 100-8210
http://www.mizuho-cb.co.uk | Nicole.Elliot@mhcb.co.uk

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