Forex Economic Analysis

Forex Technical Analysis on Majors

Fri, May 9 2008, 07:44 GMT
by Stoyan Mihaylov

www.deltastock.com


  • EUR/USD

eurusd

Current level-1.5442

The pair is in a downtrend from the short-term top at 1.6019.  Technical indicators on the 4 h. chart are still falling and convergent.  After breaking below the 1.5361 support next important level is projected at  1.4966-1.50+ sentiment level.
 

The corrective construction from 1.5361 has resulted in renewing the downtrend, reaching low at 1.5283.  Unfortunately there is no a reliable support all the way down to 1.50+, so the expected reversal will be confirmed only above  1.5601 resistance.  The rebound from the recent 1.5283 seems to be a corrective one, so after reaching an intraday high we will expect one more dip downwards to 1.5221 for finalizing the whole slide since 1.6017.  Inttraday bias is positive, targeting 1.5507-26, where a reversal should be expected for a break below 1.5393 and a slide towards 1.5221.  Hold on to the longs for 1.5507 with a tight stop/reverse at 1.5393 for 1.5283.

Key Market Levels
MinorIntradayMajorIntraweek
Resistance1.55271.56011.58071.6020
Support1.53931.52831.5000+1.4446

__________



  • USD/JPY

usdjpy

Current level - 103.56

The pair is in a corrective uptrend from the 95.75 short-term bottom. Technical indicators are rising slowly and the upmove is dynamically supported at 104.03. The inner structure of the rise is by all means a corrective one, so from a larger point of view the overall downtrend from 124.14 is not over yet.  

We still expect a downtrend to emerge, for a break below the 99.86 dynamic support, en route to 95.75.  Nevertheless the uptrend on the lower time-frames is still intact, so only below 100.82  will be confirmed, that the outlook is totally bearish for 95.75.
Tuesday's high at 105.59 has the potential to become a significant top , but confirmation will come below 100.82. Intraday we will expect acceleration of the downtrend with targets around the 102.68 support zone.

Key Market Levels
MinorIntradayMajorIntraweek
Resistance104.12105.68106.31108.31
Support103.21102.68100.8295.75

__________



  • GBP/USD

gbpusd

Current level- 1.9534

The pair has reversed at 1.9337 and the technical indicators are rising and convergent. Trading is situated between the 50-day MA, projected at 1.9741 and the 200-day SMA, at 1.9925.
 
After last week's break below 1.9782 crucial support it became clear, that  the bigger corrective construction from the 2.0397 top is not yet finalized and new bottom below the 1.9599 low is to be expected. This doesn't change much our short-term view (for one more leg upwards to 2.0397 and 2.0531), but has postponed our expectations for a forthcoming test of the 2.0196 resistance zone. 


Nothing more than a retest of the already broken dynamic support at 1.9638 is what happened yesterday, after the BoE interest rate announcement, so  the final dip to 1.9431 can not be ruled out yet. We  will establish shorts with tight stop at 1.9571 and a target at 1.9446. If  stop is taken out  will wait for the first reaction from the 1.9647-53 resistance.

Key Market Levels
MinorIntradayMajorIntraweek
Resistance1.95731.96481.99612.0196
Support1.95011.94631.94211.9338

Published on  Fri, May 9 2008, 07:50 GMT

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Legal disclaimer and risk disclosure

These analyses are for information purposes only. They DO NOT post a BUY or SELL recommendation for any of the financial instruments herein analyzed. The information is obtained from generally accessible data sources. The forecasts made are based on technical analysis. However, Deltastock’s Analyst Dept. also takes into consideration a number of fundamental and macroeconomic factors, which we believe impact the price moves of the observed instruments. Deltastock Inc. assumes no responsibility for errors, inaccuracies or omissions in these materials, nor shall it be liable for damages arising out of any person's reliance upon the information on this page. Deltastock Inc. shall not be liable for any special, indirect, incidental, or consequential damages, including without limitation, losses or unrealized gains that may result. Any information is subject to change without notice.

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