FX Technical Analysis

Daily Forex Technicals | Written by Mizuho Corporate Bank | Jul 30 08 06:22 GMT |

EURUSD Comment: Dropping further than we had allowed for towards the bottom of the Ichimoku 'cloud'. Expect it to try and base against here this morning. Strategy: Attempt longs at 1.5565; stop below 1.5500. Add to longs on a sustained break above 1.5650 to cover longs between 1.5950 and 1.6020. Direction of Trade: ↗ Chart Levels: Support Resistance 1.5575 1.5600 1.5553 1.5650* 1.5525* 1.5700 1.5460 1.5768 1.5350* 1.5815 GBPUSD Comment: Very messy as we dip to a new recent low while still working within a potential 'flag' formation. We expect Cable to try and stabilise around 1.9750 this morning and creep back up to the 9 and 26-day averages around 1.9900 late tonight or tomorrow. Strategy: Attempt longs at 1.9790; stop below 1.9650. Short term target 1.9900, then 2.1000. Direction of Trade: →↗ Chart Levels: Support Resistance 1.9781 1.9823 1.9760 1.9900 1.9695 1.9969 1.9650* 2.0000 1.9600 2.0100* USDJPY Comment: One of the strongest daily closes this year yet it all feels rather unconvincing. The US dollar is not overbought and momentum is zero. For today expect a cautious upside probe this morning followed by a sudden slide very late today or tomorrow. Strategy: Sell at 108.00; stop above 108.65. Short term target 107.30, then 106.60. Direction of Trade: →↘ Chart Levels: Support Resistance 107.87 108.30 107.30 108.59/108.62** 106.85 109.00 106.58* 110.15* 106.00 111.00 EUR/JPY Comment: Little to add as we consolidate above the 26-day moving average inside a potential 'broadening top', both on the daily and on the weekly charts. A drop below 167.50 might add some much needed momentum. Strategy: Sell at 168.25, adding to 169.50; stop above 170.00. Short term target 167.60, then 166.00. Direction of Trade: ↘ Chart Levels: Support Resistance 168.17 168.65 167.90 169.00 167.50* 169.73 167.00 169.91/170.00* 166.00 170.70* 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.