Forex Technical Update

Daily Forex Technicals | Written by Rcpl Forex | Jul 24 08 07:33 GMT |

Euro: Euro continued its slide to touch a low of 1.5670 (55 daily EMA & 50% retracement) as commodities fell and economic data weakened further. The daily and hourly stochastic shows a fall while the 4-hourly has flattened in the oversold region which indicates a further fall. However 1.5670 continues to remain a critical support and a decisive break of this level will give bearish bias to the pair and fall till 1.5585(61.8% retracement) can be expected. Key focus is on Germany IFO today whose sentiment is expected weak. (Eur/Usd: 1.5698). Pound: Pound received a major boost in yesterday's session as it touched an intraday high of 2.0030 but later closed weaker at 1.9973. The daily and 4-hourly stochastic continues to show a further downside hence a retracement till 1.9896 (21 daily and 50% Retracement daily charts) can be expected. Looking ahead Uk retail sales are expected to be negative which could initiate a selling spree for the pair. (Gbp/Usd: 1.9979). Yen: USD/JPY pair remained buoyant as it remained above 107 levels but was unable to penetrate the 108 level as it posted a high of 107.98. The pair has regained its upward price channel support and if the global equities continue to rally further an upmove till 108.83 (55 weekly EMA) can be expected in next few sessions. (Usd/Jpy: 107.83). Rupee: Rupee rose to its highest level in more than two months on Wednesday helped by a rally in stock markets after a government victory in a confidence vote eased concerns about prolonged political uncertainty. It ended at 42.09/10 per dollar, off a high of 42.0850, 1.5 percent stronger than Tuesday's close of 42.73/74. Furthermore, the domestic currency has broken the 42 mark today and poised a high of 41.80. (Usd/Inr: 41.93) Swiss Franc: USD/CHF pair surged 101 pips from the day's low to touch a high of 1.0399 (21 weekly EMA & 100 Daily EMA). The Daily & 4-Hourly stochastic are extremely overbought while the hourly stochastic shows buying pressure. However, only a firm break of this resistance will indicate further bullishness in the pair. Otherwise a Retracement till 1.0300 (38.2% Retracement of recent rise) can be witnessed. (Usd/Chf-1.0373). Australian Dollar: Aussie plummeted for the 3rd consecutive day weakening 134 pips from the intra day high of 0.9734 as the commodity prices eased further and RBNZ announced 25bps rate cut. Despite the major stochastic being highly oversold a further downside till 0.9526 (61.8% retracement daily charts) can be seen in the coming sessions. Longs can be initiated at those levels targeting 60-70 pips. (Aud/Usd-0.9582) Gold: Gold fell $30 to touch a low of $917 before closing at $920 as the USD gained strength and Oil continued to slide. The daily & 4-Hourly stochastic are extremely oversold while the hourly stochastic is overbought. Immediate support comes in around $910 (100 daily EMA, 21Weekly EMA & 38.2% Retracement of the recent fall in weekly) breaking which gold can fall below $900 mark. (Gold: $923) Dollar index: Dollar index is currently at 72.94, 30 points higher than yesterday's level of 72.64. The stochastic is at 65% and showing an upmove. Medium term target 75.00. RCPL FOREX www.rcplforex.com DISCLAIMER These views/ forecasts/ suggestions, though proferred with the best of intentions, are based on our reading of the market at the time of writing. They are subject to change without notice.Though the information sources are believed to be reliable, the information is not guaranteed for accuracy. Those acting in the market on the basis of these are themselves responsible for any profits or losses that might occur, without recourse to us. World financial markets, and especially the Foreign Exchange markets, are inherently risky and it is assumed that those who trade these markets are fully aware of the risk of real loss involved.