FX Technical Analysis

Daily Forex Technicals | Written by Mizuho Corporate Bank | Jul 25 08 06:54 GMT |

EURUSD Comment: Basing against the top of the Ichimoku 'cloud' after an A, B, C-type pullback where C is a little bigger than A. Expect a sharp rally back up to 1.5800. A weekly close above here might turn momentum bullish. Strategy: Buy at 1.5715; stop below 1.5625. Add to longs on a sustained break above 1.5800 to cover longs between 1.5950 and 1.6020. Direction of Trade: ↗ Chart Levels: Support Resistance 1.5662 1.5724 1.5650 1.5750 1.5628* 1.5800 1.5600 1.5880 1.5525* 1.5945* GBPUSD Comment: Still trying to base against 1.9800. With a little help from other currencies it should start rallying back up to 2.0000. We remind that only when Cable starts holding comfortably above 2.0100 will the risk of further downside tests ease. A weekly close above 2.0000 might help increase bullish momentum. Strategy: Attempt small longs at 1.9855; stop below 1.9800. Short term target 2.0000, then 2.1000. Direction of Trade: →↗ Chart Levels: Support Resistance 1.9833 1.9883 1.9817 1.9945 1.9750 2.0000 1.9700 2.0100* 1.9650* 2.0162* USDJPY Comment: Retreating from trendline resistance and now below the 200-day moving average. We continue to watch for signs of stalling with a weekly close below 106.00 probably turning momentum bearish. For today expect nervous work between 106.00 and 107.00. Strategy: Sell at 106.70/107.00; stop above 107.55. Short term target 106.00, then 105.25. Direction of Trade: →↘ Chart Levels: Support Resistance 106.70 107.00 106.60 107.45 106.30 107.99* 106.00* 108.59/108.62** 105.66 109.00 EUR/JPY Comment: Mercifully pulling back from the top of a potential 'broadening top' but bearish momentum is unlikely to kick in strongly until we break below the Ichimoku 'cloud'. Watch for a potential 'spike high' or 'bearish engulfing' candle on both on the daily and the weekly charts. Strategy: Sell at 167.75, adding to 168.50; stop above 170.00. Short term target 167.20 then 166.20. Direction of Trade: ↘ Chart Levels: Support Resistance 167.62 168.55 167.20 169.20 167.00 169.97* 166.80 170.00 165.33* 170.70* Mizuho Corporate Bank Disclaimer The information contained in this paper is based on or derived from information generally available to the public from sources believed to be reliable. No representation or warranty is made or implied that it is accurate or complete. Any opinions expressed in this paper are subject to change without notice. This paper has been prepared solely for information purposes and if so decided, for private circulation and does not constitute any solicitation to buy or sell any instrument, or to engage in any trading strategy.