Forex Economic Analysis

Forex Technical Analysis on Majors

Tue, May 13 2008, 08:59 GMT
by Stoyan Mihaylov

www.deltastock.com


  • EUR/USD

eurusd130508

Current level-1.5517

The pair has built a local bottom at 1.5283 and has advanced well to 1.5571. Technical indicators are reversing and divergent. The 50- day SMA is currently projected at 1.5631.
 

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. 


Yesterday the pair managed to break through the crucial 1.5437, reaching high at 1.5571. From the recent peak, a consolidation is unfolding downwards, that should be limited above 1.5467 before breaking above 1.5571, towards 1.5712. Short-term traders should have in mind, that untill 1.5601 resistance is intact, the downtrend from 1.6020 is to be considered unvioleted.
Today's strategy : Stand aside.

Key Market Levels
MinorIntradayMajorIntraweek
Resistance1.55711.56011.58071.6020
Support1.54671.52831.5000+1.4446

__________



  • USD/JPY

usdjpy

Current level - 103.71

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 102.36. 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.


Nice sell-off from last week's high at 105.59 and it has broken below the rising dynamic support, projected at 104.03, so there is a reason to believe, that probably the whole corrective structure since 95.75 is already over. Our intraday target at 102.68 was fulfilled with 102.63, so now a consolidation is unfolding, aiming at 104.12 and 104.45, with the purpose to correct the sell-off from 105.59.
Stay on the long side with targets above 104.12 and a risk-limit at 103.27. More broadly speaking, we will be ready to sell 104.26 if seen, with a stop at 104.49 and targets below 103.36.

Key Market Levels
MinorIntradayMajorIntraweek
Resistance104.12104.53105.59108.31
Support103.27102.68100.8295.75

__________



  • GBP/USD

gbpusd

Current level- 1.9571

The pair has reversed at 1.9337 and the technical indicators are rising and convergent. Trading is situated below the 50-day MA, projected at 1.9741 and the 200-day SMA, at 1.9925.
 

With the recent low at 1.9441 the downtrend from 1.9773 was confirmed to be completed, but there is still not enough info about the larger trend from 2.0397. Yesterday's sharp rise tested again the dynamic resistance at 1.9647-56 and failed to break above, so currently a consolidation is unfolding limited above 1.9489. Untill the pair stays below 1.9647-56 the overall bias remains negative and there is a risk of one more attempt downwards, to 1.9412-31.
Today's strategy : Stand aside

Key Market Levels
MinorIntradayMajorIntraweek
Resistance1.96331.97831.99612.0196
Support1.94311.93671.93381.9196

Published on  Tue, May 13 2008, 09:05 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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