Forex Technical Update

Daily Forex Technicals | Written by Rcpl Forex | Aug 13 08 07:07 GMT |

Euro: Euro remained under pressure as it touched the day's low of 1.4815 but pared most of its losses to close above 1.49 levels yesterday. There seems to be no respite for the pair as the Hourly and 4-Hourly stochastic continue to show selling pressure and it is holding just below the 55 weekly EMA (1.4950 level) and thus may further plunge towards a medium term bottom at 1.47 levels in the coming sessions (50% Retracement in weekly chart). (Eur/Usd: 1.4924).

Pound: Cable continued to fall for the 8th consecutive trading session shedding almost 170 pips to touch 1.8952 in yesterday's session before closing at 1.8958. The daily stochastic continues to remain flat in the oversold region, not giving any clear buy signals keeping the overall bias on the downside. Immediate support comes at 1.8850 levels (55 monthly EMA) which can be witnessed. (Gbp/Usd: 1.8977).

Yen: USD/JPY pair fell 114 pips from the days high of 110.35 as risk aversion returned on Tuesday, thus rewarding the low-yielding Japanese yen. The pair dipped further down in the early morning session to test bids at 108.37 levels as it took support of 21 daily EMA. The Hourly and 4-Hourly charts show buying pressure which can cause an upmove till 109.40 levels (50% retracement of latest fall in daily). (Usd/Jpy: 108.85).

Rupee: Rupee depreciated about 20 paise on Tuesday as the dollar strengthened against most major currencies in the global markets. It opened at 42.18/20 and weakened to touch an intra-day low 42.44/45 due to dollar demand by oil companies and sliding sensex. Later it partially recovered to close at 42.37/38, against the previous close of 42.16/17. (Usd/Inr: 42.62).

Swiss Franc: Usd/Chf pair moved in a wide of 100 pips range yesterday, not being able to trade decisively in any direction. The weekly stochastic is moving towards the overbought region and with the immediate resistance coming in at 1.0878 (55 weekly EMA) the intra day bias remains on the downside hence a retracement till 1.0777 (100 hourly EMA) can be witnessed. (Usd/Chf-1.0857).

Australian Dollar: Aussie is in a clear downtrend for last 12 days, taking out every key support that comes in its way. Yesterday the pair fell 142 pips and could not hold the crucial support of 0.8700 (55 weekly EMA). The daily stochastic has flattened in the oversold region indicating no signs of bottom in the pair. Hence a further downside till 0.8506 (61.8% retracement of total rise in weekly charts) can be witnessed in next few sessions. (Aud/Usd-0.8658).

Gold: Gold fell for an eighth straight session, the longest slide since 2001. Gold was supported at $800 key psychological level as it touched a low of $801 in yesterday's session and later recovered it losses to touch a high of $826 due to profit taking. However, a firm break of $803 (100 weekly EMA) would pave the way for further downside till $751 (200 weekly EMA). (Gold: $814).

Dollar index: Dollar index continued to remain strong and is currently trading above the 76.00 mark at 76.20. The stochastic are neutrally poised at 89% and showing a further upside.

RCPL FOREX
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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.