*** Weekly Technical Analysis

EURO

The pair declined after reaching the 1.8% extension for the upside wave as seen in the above image at 1.3670 before reversing to trade below 1.3525, which is the 23.6% correction for the ascending channel that started on 22-04-2009. We see momentum indicators are adjusting to the downside which supports our outlook towards the 38.2% at 1.3405 before reaching the 50% correction at 1.3305. This downside movement is a correctional movement where maintaining levels above 1.3125 keeps the upside movements valid this week and on the medium term.

The trading range for the week is among the key support at 1.3125 and the key resistance at 1.3820

Support 1.3405 1.3305 1.3275 1.3210 1.3125

Resistance 1.3505 1.3540 1.3670 1.3720 1.3770

Recommendation According to our analysis, we believe the pair is to gather bearish momentum from 1.3505 and 1.3540 with targets at 1.3405 and 1.3305 yet if trading reverses to maintain levels above 1.3670, our downside movements become invalid

Weekly Technical Analysis May-18-2009

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GBP

he pair reversed from the key resistance for the ascending channel at 1.5340 which may be enough to have the pair engage in a downside correction this week to retest 1.4995 and 1.4940 where the latter is the 20 day MA. Momentum indicators support the downside direction as the pair is being overbought where these downside movements remain as far as 1.5345 is intact.

The trading range for the week is among the key support at 1.4755 and the key resistance at 1.5600

Support 1.5120 1.4985 1.4940 1.4830 1.4755

Resistance 1.5215 1.5280 1.5325 1.5490 1.5530

Recommendation According to our analysis, we believe the pair is to gather bearish momentum from 1.5215 with targets at 1.4940 yet if it reverses to maintain levels above 1.5340, our downside movements become invalid.

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JPY

Strong downside signals on the medium term are seen through the bearish technical pattern where we currently see the pair nearing the 50% correction at 94.30 and the key support for the descending channel at 94.60 which supports an upside correction to retest the levels among 96.00 -96.45 at the very least before reversing back to the downside.

The trading range for the week is among the key support at 92.60 and the key resistance at 99.60

Support 94.60 94.30 93.65 93.25 92.60

Resistance 96.00 96.40 97.25 98.35 98.85

Recommendation According to our analysis, we believe the pair is to gather bearish momentum from 96.40 with targets at 93.25 yet if trading reverses to maintain levels above 97.25, our downside movements become invalid

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CHF

The pair moved to the upside in correctional movements where we see the pair currently maintaining levels below the resistance at 1.1250 – 1.1260 which may limit the upside movements. On the other hand, we see the pair being overbought on momentum indicators which supports our outlook to the downside to reach 1.1175 and perhaps 1.1110 where we expect the pair to slightly rebound from there.

The trading range for the week is among the key support at 1.0880 and the key resistance at 1.1415

Support 1.1170 1.1110 1.1035 1.0980 1.0880

Resistance 1.1260 1.1290 1.1300 1.1380 1.1415

Recommendation According to our analysis, we believe the pair is to gather bullish momentum from 1.1110 with targets at 1.1250 and 1.1380 yet if trading maintains below 1.1035, our upside movements become invalid.

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CAD

The Dollar versus Loonie continues to be pressured to the downside targeting 1.1300 yet the 38.2% correction at 1.1500 for the ascending channel The pair was able to exit an intraday downside channel as seen in the above image in blue, where it formed another ascending channel to maintain trading above the 23.6% correction at 1.1715. From here we expect to witness upside movements to reach 38.2% and 50% at 1.1865 and 1.1990 respectively; yet on the broader picture, note that the downside trend remains on the medium term as far as 1.2170 is intact.

The trading range for the week is among the key support at 1.1335 and the key resistance at 1.2105

Support 1.1715 1.1635 1.1545 1.1470 1.1335

Resistance 1.1825 1.1865 1.1960 1.1990 1.2105

Recommendation According to our analysis, we believe the pair is to gather bullish momentum from 1.1715 with targets at 1.1865 and 1.1990 yet if it maintains levels below 1.1635, our upside movements become invalid.