Forex Technical Update

Daily Forex Technicals | Written by Rcpl Forex | Jul 10 08 07:58 GMT |

Euro: Euro traded within 100 pips in yesterday's session as it touched a high of 1.5750. The pair took resistance around 50% of the recent fall yesterday. The 4-hourly stochastic overbought and a fall upto 1.5675 (100 4-hourly EMA & 21 Daily EMA) can be expected. Initiate longs at these levels for 50 pips intraday and stops below 1.9610. (Eur/Usd: 1.5725).

Pound: Pound accelerated to 1.9837 levels (200 Daily EMA) in the US session yesterday. Although the daily stochastic is showing an upside; the 4-hourly is extremely overbought and shows a steep fall. Thus a retracement upto 1.9770 (cluster support) is expected. A decisive break of this could further push cable to the levels of 1.9737 (200 4-hrly EMA). Key focus is the BOE rate decision today, however it is expected that the rates would remain unchanged. (Gbp/Usd: 1.9803).

Yen: USD/JPY pair weakened almost 100 pips in yesterday's session as it plummeted to 106.68 levels. The daily stochastic continue to show a fall while the hourly and 4-hourly shows strong buying pressure and an intraday upside upto 107.60 (Falling trend line) can be expected. (Usd/Jpy: 106.87).

Rupee: Rupee closed about 15 paise higher against USD on Wednesday to close at 43.11 as domestic equity market soared and global oil prices eased and political instability seemed to have waned off. In the forward premia market, the six month closed at 4.6 per cent (4.25 per cent) and the 12-month at 3.67 per cent (3.79 per cent). (Usd/Inr: 43.21).

Swiss Franc: USD/CHF pair receded almost 75 pips from the day's high of 1.0352 (55 daily EMA & 61.8% retracement of recent fall) which continues to remain a strong resistance. The 4-hourly stochastic is oversold whereas the daily and hourly stochastic shows selling pressure and may bring a retracement first upto the cluster support of 1.0275 (55 & 21 4-Hourly, 100 & 200 Hourly EMA). Break of this could further push the pair to 1.0230(50% Retracement of recent rise). (Usd/Chf-1.0295).

Australian Dollar: AUD/USD surged 113 pips as it formed a bullish momentum reversal bar yesterday to touch a high of 0.9590. Aussie continues to surge as it is currently trading around 0.9610 levels. The hourly and 4-hourly stochastic have flattened in the overbought territory and daily charts continue to show buying pressure which can push the pair upto 0.9640 (Horizontal trendline resistance). (Aud/Usd: 0.9608).

Gold: Gold gained strength as it traded within $13 in yesterday's session to surge to a high of $928. The 4-Hourly stochastic is overbought while the daily stochastic shows a further buying pressure which can cause an upmove till $936 level (61.8% Retracement of fall from $1032 to $845). (Gold: $928.80).

Dollar index: Dollar index is currently at 72.90, 37 points lower than previous levels of 73.27. The stochastic are at 41 % and neutrally poised. Medium term target 75.00.

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