Technical analysis for May 25, 2010

The pre-planned break-out variant for buyers has been implemented, but parity of both party activity, marked by OsMA trend indicator, does not clarify the choice whether to hold open long positions or close with current minimal loss. Therefore, at this point, considering holding of open long positions based on suppositions of further rate rise, we can assume probability of short-term return to close 1,1560/80 supports, where it is recommended to evaluate the development of the activity of both parties in accordance with the charts of a shorter time interval. As for short-term buying positions, on condition of the formation of topping signals the targets will be 1,1620/40 and (or) further break-out variant up to 1,1680/1,1700, 1,1740/60, 1,1800/20. The alternative for sales will be below 1,1500 with the targets of 1,1440/60, 1,1380/1,1400, 1,1320/40.

GBP

The earlier opened and held short positions had a positive result in attainment of basic anticipated targets. OsMA trend indicator, having marked preserved low activity of both parties, does not clarify the choice of planning priorities for today. Therefore, considering suppositions of further rate range movement, we can assume probability of rate return to 1,4380/1,4400 levels, where it is recommended to evaluate the development of the activity of both parties in accordance with the charts of a shorter time interval. As for short-term sales, on condition of the formation of topping signals the targets will be 1,4320/40, 1,4260/80, 1,4200/20 and (or) further break-out variant up to 1,4140/60, 1,4060/80, 1,3980/1,4000. The alternative for buyers will be above 1,4540 with the targets of 1,4580/1,4600, 1,4640/60, 1,4700/20.

JPY

The estimated test of key resistance range levels has been confirmed with conditions for implementation of pre-planned short positions. OsMA trend indicator, considering its current bearish activity, favors holding of open short positions with the targets of 89,60/80, 89,00/20 and (or) further break-out variant up to 88,40/60, 88,00/20. The alternative for buyers, as earlier, will be above 91,00 with the targets of 91,40/60, 92,00/20.

EUR

The pre-planned break-out variant for sales has been implemented with overlap of minimal anticipated target. OsMA trend indicator, having marked strengthening of bearish activity, regardless of bullish reversal sign, suggests incompleteness of rate decline period. Therefore, considering rate position below Ichimoku cloud as another sign favoring sales, we can assume probability of rate return to Senkou Span B at 1,2370/90 levels, where it is recommended to evaluate the development of the activity of both parties in accordance with the charts of a shorter time interval. As for short-term sales, on condition of the formation of topping signals the targets will be 1,2300/20, 1,2260/80 and (or) further break-out variant up to 1,2200/20, 1,2140/60, 1,2080/1,2100. The alternative for buyers will be above 1,2500 with the targets of 1,2540/60, 1,2600/20, 1,2660/80.