FX Technical Analysis

Daily Forex Technicals | Written by Mizuho Corporate Bank | Jul 29 08 06:27 GMT |

EURUSD

Comment: Rallying slowly from the top of the Ichimoku 'cloud' after an A, B, C-type pullback where C is a little bigger than A. Expect another crawl up to the 9 and 26-day averages at 1.5764/1.5786. A sustained break above here, possibly very late today, should add some much-needed bullish momentum for a rally to 1.5950.

Strategy: Buy at 1.5750; 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
1.5736	1.5755
1.5680	1.5786
1.5628*	1.5800
1.5600	1.5880
1.5525*	1.5945*

GBPUSD

Comment: Working within a potential 'flag' formation while holding above 1.9800. Expect an upside probe towards 2.0000 today.

Strategy: Attempt longs at 1.9950, adding to 1.9850; stop below 1.9800. Short term target 2.0000, then 2.1000.

Direction of Trade: →↗

Chart Levels:

Support	Resistance
1.9897	1.9965
1.9840	2.0000
1.9814	2.0032
1.9770	2.0100*
1.9650*	2.0162*

USDJPY

Comment: Holding in a tiny range under June's highs. The US dollar is not overbought and momentum is zero. Open interest is down again and around half of last year's peak. For today expect several random moves roughly between 107.75 and 106.65.

Strategy: Sell at 107.50, adding to 108.00; stop above 108.65. Short term target 107.25, then 106.65.

Direction of Trade: →↘

Chart Levels:

Support	Resistance
107.30	107.50
107.00	108.08
106.75	108.25
106.58	108.59/108.62**
106.00	109.00

EUR/JPY

Comment: Nothing to add; looking like a potential 'broadening top' both on the daily and on the weekly charts. Watch for something similar this week.

Strategy: Sell at 169.15, adding to 169.70; stop above 170.00. Short term target 168.20 then 167.20.

Direction of Trade: ↘

Chart Levels:

Support	Resistance
168.94	169.26
168.60	169.73
167.90	169.91/169.97*
167.50	170.00
167.00	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.