Forexpros.com Analysis - April 23, 2009

Resistance 3: 1.4820

Resistance 2: 1.4780

Resistance 1: 1.4720/30

Latest New York: 1.4620

Support 1: 1.4500/10

Support 2: 1.4440/50

Support 3: 1.4400

Comments

Rate gets slammed as stops and active selling from cross-spreaders break the rate under the 1.4440 support zone; retraces earlier gains to probe for stops in range. Rate likely to have stops building in-range to the upside now that downside stops cleared in a rush. Rate recovers ahead of the fix and regains the 1.4500 handle for most of the day but remains whippy. Initial test of the psychological 1.5000 area now complete with the pullback likely about over as well and the rate is ready to try for the 1.5000 handle again. Rate likely to find buyers on any dip to the 1.4500 area as this was the breakout area. Rate tests the 50 day MA before recovering back to hold near the 100 day MA; aggressive traders can look to buy dips. The shorts have lost control of the market above the 1.4440 area now; traders report stops in-range adding for two-way action. Test of further lows likely to encourage a round of short-covering.

Data due Thursday: All times EASTERN (-5 GMT)

6:00am GBP CBI Industrial Order Expectations

Analysis by: Forexpros.com Written by Jason Alan Jankovsky

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