Forex Economic Analysis

Forex Technical Analysis on Majors

Fri, May 16 2008, 09:23 GMT
by Stoyan Mihaylov

www.deltastock.com


  • EUR/USD

E$160508

Current level-1.5483

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.
 
A complex corrective pattern is underway, since the 1.5283 local bottom and we expect a little bit more ranging in the 1.5571-1.5412 zone , before breaking upwards with a minimum target at 1.5710. Intraday expect swing volatility below 1.5534 and above 1.5431.


Today's strategy: Trade the range 1.5534-1.5431 and be ready to reverse and go long on a break of the 1.5571 resistance with a target at 1.5712.

Key Market Levels
MinorIntradayMajorIntraweek
Resistance1.55711.56011.58071.6020
Support1.54121.53611.5000+1.4446

__________


  • USD/JPY

usdjpy140508

Current level - 104.31

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.  


The pair has tested the dynamic resistance at 105.44 and is downtrending nicely since that level. We expect to  see a test of the 103.96 support and a rebound to 104.39 to follow, before the next leg downwards to 103.12.
Today' strategy: Attempt shorts at 104.42 with a stop above 104.92 and a target at 103.12.

Key Market Levels
MinorIntradayMajorIntraweek
Resistance105.24105.69106.68108.31
Support103.96103.12100.8295.75

__________



  • GBP/USD

gbpusd

Current level- 1.9486

Downtrend from the 2.0397 local top is still intact and has reached a low at 1.9374. Technical indicators are falling on the 4 h. chart and the trading is situated below the 50- and 200-day SMA, currently projected at 1.9819 and 2.0044.
 

New low was reached at 1.9374, few pips above the important 1.9367 support. We still think, that last week's activity is a broad test of the 1.9338-67 support and having in mind the high (weekly) frame, that it is derived from, it will take more time to be worked out. Be patient and wait for a break either below 1.9338 or above 1.9633 to determine the general direction of next month's trades.
Today's strategy : Buy on current levels, adding at 1.9442 (if seen), with a risk limit below 1.9404 and a target at 1.9567.

Key Market Levels
MinorIntradayMajorIntraweek
Resistance1.95731.96481.99612.0196
Support1.94041.93671.93381.9196

Published on  Fri, May 16 2008, 13:42 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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