Forex Technical Update

Daily Forex Technicals | Written by Rcpl Forex | Jul 09 08 07:37 GMT |

Euro: Euro dipped to touch 1.5634 levels where it was supported by the upward trendline in yesterday's session. The daily and 4-hourly stochastic are in the oversold region while the hourly shows some buying pressure. A further downside can be seen till the levels 1.5640 (trendline support and 200 4-hrly EMA). Cautious longs can be initiated at those levels targeting 50- 60 pips. (Eur/Usd : 1.5700).

Pound: Pound remained volatile as it traded within 132 pips as it touched an intra day high of 1.9797 and closed weaker at 1.9693. The daily and 4-hourly stochastic oversold indicating slight buying pressure hence an upmove upto 1.9780 (100 daily EMA and 38.2% retracement daily charts) can be expected. Shorts can be initiated at those levels targeting 50-60 pips (Gbp/Usd: 1.9701)

Yen: USD/JPY pair scaled to touch a high of 107.75 (200 daily EMA) and later closed weaker at 107.13. All major stochastic are indicating a downside thus a retracement till 106.85 (55 4-hrly & 200 hrly EMA) could be expected. The pair continues to trade in an upward price channel with strong resistance coming at 107.77 (trendline resistance and 200 daily EMA) and a decisive break of this would revive the bullish momentum for the pair else it will remain range-bound. (Usd/Jpy: 107.10)

Rupee: Rupee appreciated marginally against the dollar on Tuesday after the stock markets recovered some of the initial losses. The wide fluctuations in the rupee could also be attributed to political uncertainty. It opened at 43.33/34 and touched an intra day low of 43.41/42. In the forward market, the 6-month premium closed at 4.23 per cent the 6-month premium closed at 4.23 per cent (4.52) and the 12-month ended at 3.75 per cent (3.95). (Usd/Inr: 43.13)

Swiss Franc: USD/CHF pair surged 130 pips on Tuesday to touch a high 1.0348 (55 daily EMA & 61.8% retracement of recent fall). The hourly stochastic is in oversold region while the daily and 4-hourly stochastic show selling pressure which can lead the pair to 1.0230 levels (50% Retracement of recent rise). Look for opportunities to initiate shorts at current levels (Usd/Chf-1.0325)

Australian Dollar: AUD/USD pair remained under pressure on the back of weak commodity prices as it fell 66 pips from the day's high of 0.9567. The hourly stochastic are in the oversold region while the 4-hourly and daily continue to show selling pressure. The pair is currently taking support at 0.9480 (55 daily EMA) a decisive break of which can pull the pair down to 0.9400 mark (21 Weekly EMA). (Aud/Usd: 0.9502)

Gold: Gold traded within $21 in yesterday's session as it dipped to a low of $912 before gaining some strength in the U.S. session to close at $919. The 4-Hourly & daily stochastic show room for further downmove. Immediate support comes in at $912 levels. (21 daily EMA) on breaking which $900 mark can be witnessed (61.8% Retracement of recent rise). (Gold: $919.25)

Dollar index: Dollar index is currently at 73.27, 22 points higher than previous levels of 73.05. The stochastic are at 49 % and indicate a room for a further upmove. Medium term target 75.00.

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