FOREX MARKET UPDATE 16/05/07

TECHNICAL ANALYSIS ON MAJOR PAIRS


Wednesday May 16, 2007



EUR-USD
1.3591. Uptrend is still intact in a triangle configuration. It should continue to rally to 1.3615 or 1.3658 if support around 1.3576 hold. After which a pullback to 1.3576 - 1.3559 zone is possible.
USD-CHF
1.2154. Market should pop up towards 1.2196 or 1.2237 this bullish scenario would be damaged if 1.2133 - 1.2132 zone is broken, a severe break down could then occur.
USD-JPY
120.27. Our preferred outlook is for a drift down to 120.07 or below 119.86. Resistances are at 120.27 and 120.32. A rise above 120.53 would delay but not abort this expected fall.
GBP-USD
1.9859. Market looks set for gains towards 1.9906 or above in extension. Dips should find support at 1.9826 - 1.9803 zone.
EUR-CHF
1.6518. Current upmove should end around 1.6530 - 1.6541 area. A correction down to below 1.6490 or even 1.6462 is expected. A rise above 1.6564 will abort the expected correction.
EUR-JPY
163.45. Current upmove should end around 163.77 - 163.85 area. A correction down to below 162.86 or even 162.26 is expected. A rise above 164.24 will abort the expected correction.
EUR-GBP
0.6843. Decline should be supported around 0.6833 - 0.6822 zone for rally to above 0.6866. A clear break of 0.6822 will damage this expected rally.
AUD-USD
0.8339. It should trade lower to 0.8312. Resistances are at 0.8344 and 0.8357. A break of 0.8366 is bullish.
USD-CAD
1.0986. It is likely to attempt nearer support at 1.0943 for extending further to below 1.09 while below 1.0986 - 1.1030 area. Rise above 1.1051 would dampen this bearish expectation.