Forex Daily Analysis - Tuesday, May 27th

Chart Of The Day: EUR/JPY - By FX Solutions
5/27/2008 - EUR/JPY - Price on the EUR/JPY daily chart, as shown, is approaching a significant downtrend resistance level. This dynamic resistance is represented on the chart by the long red line. The strength and significance of this line has been reinforced by at least five touches since July of last year. On the impending approach of a sixth potential touch, the bias is towards a turn back down at or near the line to continue the medium-term downtrend. This bias is confirmed by oscillators like the displayed Stochastics, which have been in overbought territory and are pointing down. In the event of this move back down, the next major support to the downside resides in the region of 158.60, which comprises a significant previous support/resistance zone. >>

Euro and Pound Support at 1.57 and 1.97 - By DailyFX
The dips in the EURUSD and GBPUSD following the US holiday are corrective in nature. Both the EURUSD and GBPUSD are expected to form short term bottoms and exceed 1.9850 and 1.5817 this week. >>

Today's Market Outlook - By Windsor Brokers Ltd
EURUSD - Reversed from 1.6020, 22 Apr all-time high, to find supportt at 1.5285 on 11 Mar. A base then formed and recovery was seen to 1.5796/1.5814 on 21/22 May. Dip to 1.5693 followed, ahead of fresh strength to 1.5819 today, ahead of the current pullback. However, while 1.5693/96, 22/23 May lows hold, near-term structure remains positive and clearance at 1.5814/19 required to confirm recovery towards 1.5847 then 1.5915. >>

Forex Analysis & Today's Strategy - By Finexo Ltd.
UBS is now saying that they might experience more losses related to mortgage securities. It dropped 5.8% in Swiss trading.
Increasing bets and talks on the need for a stronger Yuan (CNY) in order to contain inflation in China. USDCNY is down by 16% since mid-2005. Speculation is done in the forward market. >>

FX Thoughts for the Day - By Kshitij Consultancy Services
GBP-USD : Our Long at 1.9823 succumbed to a "stop-hunting" dip to 1.9714 during the day. There is an important Support at 1.9670-55 now. If and while that holds, there are still chances of a rise towards 1.9925 or higher. If that Support breaks, then we may be in for an extended sideways range trade between 1.9370-9850 for the next several days. As it is, looking at the Weekly Candles, the market appears to be ranged between 1.95-2.00 for the next 4-5 weeks. >>

Elliott Wave and Fibonacci Predictions: EUR/GBP - By Capital Forex Group
Traders welcome back, as you know, I was stopped out on EUR/GBP, but I cut the losses on EUR/JPY today, with the strategy from Friday…Anyway, the Monday was really calm because of the holiday in US and UK, so I didn't stare in to the charts yesterday… >>

Technical Analysis Daily: USD/JPY - By iFOREX.bg
The US Dollar climbed against the Japanese Yen today from 103.27 to 104.00. But the trading of the currency couple still remains within a range. First support for today is expected at 103.15. Next support further down is expected at the lower limit of the consolidation at 102.50, the break of which would open potential drop towards 101.60. In upward direction resistance is given at the 104.00 level, followed by 104.50, and 105.00. >>

Daily Technical Strategist - By FXTechstrategy
Today's Focus: EURUSD & GBPUSD
EURUSD - As a run to the upside off the 1.5283 low (May 09'08) begins to consolidate due to overbought condition, the pair may head lower to unwind the said condition before an attempt on the upside could be seen again. >>


Currency Pair Daily Forecasts - By Finotec Group
EUR/USD - Market strategy can be a sell at the level 1.5810, To support our technical analysis we will use oscillators such as MACD (Moving Average Convergence Divergence); we see that the selling pressure is still gaining traction; also we notice that the signal line is under the long EMA line down and both are in a bearish direction, revealing a downward trend. >>

Forex Technical Analysis - By DeltaStock Inc.
EUR/USD - The pair has built a local bottom at 1.5283 and has advanced well beyond 1.5571. Technical indicators are rising and divergent. The 50- day SMA is currently projected at 1.5631.
USD/JPY - 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. >>

Technical Analysis Daily: GBP/USD - By iFOREX.bg
The British Pound descended today against the US Dollar from 1.9846 to 1.9717, which are the first resistance and support levels respectively for the currency couple today. The first resistance is the top from 22 May at 1.9850, whish is also 75.8% correction of the descent from 1.6015 to 1.5250. If the positive sentiment continues, next resistance is expected at 1.9930, followed by 2.0000. In downward direction next support today is expected at 1.9620, followed by 1.9540. >>

Daily Forex Analysis - By FOREXYARD
Yesterday was a relatively volatile session for greenback pairs. Because of Memorial Day in the US, banks remained closed during the day, and as a result an extremely low volume was observed within USD trading. The EUR\USD saw volatile behavior from the beginning of the trading week until the end of the day yesterday, as well as the USD\JPY. >>

Forex Depth Analysis: GBP/JPY - By Finotec Group
Sterling break could pay off against yen. Bank of Japan Governor Masaaki Shirakawa said on Tuesday that Japan's short-term interest rates are at appropriate levels considering the country's potential growth rate.'The current levels of real short-term interest rates are at zero or slightly minus,' Shirakawa told the upper house financial committee. >>

Daily FX Report - By Varengold Bank
Former Fed Chairmann Greenspan said yesterday the US will fall into a recession even as the economy show signs of stabilization. Greenspan told that the chance of a recession is greater than 50%, but the chance of a hard recession has come down markedly. He also mentioned that it is unclear when firms will finish taking write-downs related to mortgage securities. >>

Forex Technical Analytics - By FOREX Ltd
GBP - The assumed test of the key resistance range has not been confirmed but the preservation of low activity parity of both parties according to the version of OsMA indicator version gives grounds to preserve the principle of planning of trading operations without clearness in a choice of priorities and calculations for further range movement of the rate. >>

Technical Analysis for Crosses - By Crown Forex
GBP/JPY - The Pound continued its bullish wave against the Yen, as the pair rebounded last week from the strong support at 202.70s, the pair now targets the 206.11 as long as the 204.08 remains intact, dropping below the 204 levels would indicate the pair might be heading towards the 202.70s level, while breaching the 206.11 could lead the pair up to the 207.96 level. >>

Technical Analysis for Major Currencies - By Crown Forex
EURO - The European currency is targeting higher today as the technical indicators are adjusting for a strong bullish movement and so if the pair breaches the 1.5820 the first target will be 1.5950 and then for new fresh highs above 1.6000. From the downside, the risk limit to this short term bullish scenario lies at 1.5700 which provides the first acceptable support for consolidation purposes. >>

Pro FX Commentary: USDCHF - By Global Forex Trading
The pullback to the 1.0353 high came in 3 waves and thus we face the possibility of a complex correction. Thus we need to allow for a flat correction back to 1.0232 and possibly an expanded flat to 1.0203 both of which could still see a move tot eh 41.4% retracement in Wave iv at 1.0372. >>

Forex and Dow Jones Recommended Levels - By FXtechtrade
EURUSD - Today's support: - 1.5774 and 1.5738 (main), where correction is possible. Break would give 1.5717, where correction also may be. Then follows 1.5705. Break of the latter would result in 1.5682. If a strong impulse, we would see 1.5666. Continuation will give 1.5644. >>

Daily Technical Analysis - By FX Instructor
Yesterday we didn't see significant movement due to holidays. My model for EURUSD remains long still targeting 1.5850. An upside break of that level would open the door for 1.5950. Immediate support seen at 1.5750. CCI about to cross 100 line down, so watch out for a minor downside pullback. >>

Daily Forex Market Commentary - By Global Forex Trading
The dollar drifted aimlessly during the Memorial Day weekend. Trading should return to normal today, but probably slowly. Expect an attempt to recover before the dollar turns lower. >>