Forex Technical Update

Daily Forex Technicals | Written by Rcpl Forex | Jul 31 08 06:40 GMT |

Euro: Euro extended its losses as it fell to an intraday low of 1.5522 before closing at 1.5575. All major stochastic indicates weakness in the pair and a break of the critical support at 1.5545 (100 daily & 21 weekly EMA, trendline support) will lead to further fall till1.5460 (Horizontal consolidation). Shorts can be initiated at current levels for intraday gains of 50-60 pips. (Eur/Usd: 1.5584). Pound: Pound fell 98 pips from the day's high to touch a low of 1.9744 on the back of good U.S. ADP employment data. The Hourly stochastic is showing an upmove while the daily and 4-Hourly stochastic show selling pressure which can lead to a further fall. Immediate resistance comes in at 1.9828 (38.2% Retracement of recent fall and 55 Hourly EMA) where shorts can be initiated for intraday gains of 75 pips. (Gbp/Usd: 1.9803). Yen: USD/JPY pair surpassed the 108 level as US equities surged. Overall the pair traded with a low of 107.30 and a high of 108.30 before closing the day around 108.10. The pair has been continuously trading close to the upward price channel support indicating a strong upside with a target of 108.79 (55 weekly EMA). However 106.36 (55 daily EMA and trendline support ) continues to remain a critical support and a firm break of this level would turn the outlook bearish (Usd/Jpy: 107.97). Rupee: Rupee gained on Wednesday tracking the upswing in the domestic stock market and the ease in oil prices. It opened at 42.52/53 and touched an intra-day low of 42.58/59. It then appreciated to finally end at 42.36/37 against the previous close at 42.64/65. In the forward premia market, the six-month closed at 4.97 per cent (5.19 per cent) and the 12-month ended at 4.14 per cent (4.27 per cent). (Usd/Inr: 42.45) Swiss Franc: USD/CHF pair surged to a new high of 1.0520 but lost some of its gains to close at 1.0483. The daily stochastic is highly overbought while the 4-hourly shows a fall hence a downside till 1.0424 (21 4-hrly EMA) can be witnessed today. A continued sustenance above 1.0400 will maintain the bullish momentum for the pair with a target of 1.0605 (50 % retracement in weekly charts) (Usd/Chf-1.0475). Australian Dollar: Aussie weakened 126 pips in yesterday's session as sharp price declines were seen in commodities market. The pair is currently trading close to 0.9440 (21 weekly and 100 daily EMA) with the daily stochastic highly oversold and 4-hourly showing an upmove a retracement till 0.9519 (21 4-hourly EMA) can be expected in today's session. However the overall bias continues to remain on the downside with a target of 0.9350 (38.2 % retracement of the rise from 0.8520 to 0.9850 in daily charts) (Aud/Usd-0.9436) Gold: Gold fell sharply from a high of $919 to a low of $893 as the USD strengthened; oil dropped and was further weighed down by buoyant global equities. However later gained some strength and closed at $905. The daily and 4-hourly stochastic shows some buying pressure hence an intraday upmove till $917 (21 4-hrly EMA) can be expected. (Gold: $911) Dollar index: Dollar index is currently at 73.44, 1 points lower than yesterdays level of 73.45. The stochastic is at 89.63% and shows a downmove. 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.