Forex Technical Update

Daily Forex Technicals | Written by Rcpl Forex | Aug 19 08 07:09 GMT |

Euro: Euro witnessed a sideways movement of about 95 pips yesterday plunging down from the highs of 1.4767. All major stochastic is oversold, yet the overall bias remains on the downside for the pair. Sustaining below the immediate resistance at 1.4754 (21 4-hourly EMA) can push Euro to 1.4365 levels (100 Weekly EMA & 61.8% of the rise in weekly charts). Key focus is on the Eurozone Zew sentiment today. (Eur/Usd: 1.4670).

Pound: Cable was unable to sustain above 1.87 levels yesterday as further selling came in taking the currency pair to 1.8618 low. The daily & weekly stochastic is extremely oversold whereas the hourly and 4-hourly shows further selling pressure. The overall bias remains on the downside with minor resistance coming at 1.8695 (21 4-hourly EMA); breaking which Cable can surge upto 1.8950 levels (55 4-hourly EMA). Shorts can be initiated around those levels. (Gbp/Usd: 1.8610).

Yen: USD/JPY pair witnessed a sideways range bound movement of about 60 pips yesterday falling to a low of 109.96. The Hourly and 4-Hourly charts are showing some buying pressure while the daily and weekly is yet to correct in the overbought region. Bank of Japan kept key interest rates unchanged at 0.5% today, thus taking the pair to 109.66 levels. Opportunities to initiate longs at lower levels could be considered. (Usd/Jpy: 109.91).

Rupee: The domestic currency remained quite volatile yesterday depreciating sharply against the dollar touching an intraday high of 43.21 and a low of 43.61 on broad base dollar strength. Intervention by the Central Bank may check a sharp fall of the domestic currency. Indian Currency Market is closed today. (Usd/Inr: 43.59).

Swiss Franc: Usd/Chf pair traded within 95 pips taking support around 1.0910 levels and strengthening all the way to 1.10 levels Although the charts are overbought, clear sell signal is not indicated. Immediate support comes at 1.0970 levels followed by cluster support of 1.0940 levels (21 4-Hourly & 38.2% Retracement). Intraday perspectives initiate longs at these 1.0940 levels targeting 40 pips. (Usd/Chf-1.0980).

Australian Dollar: Aussie mildly strengthened yesterday to touch an intraday high of 0.8757 before giving away most of its gains and dipping to 0.8633 early today as RBA announced that there could be a possibility of rate cut in the coming months. All major stochastic continues to show selling pressure and only if 0.85 (61.8% of the rise in weekly) sustains, Aussie may recover to cluster resistance around 0.90 levels. (Aud/Usd-0.8652).

Gold: Gold recovered some gains on Monday by touching $803 with the day's low of $789. The daily and weekly charts are oversold. The Hourly chart is showing some buying pressure while 4-hourly is showing further selling pressure with immediate resistance first at $793 (21 Hourly EMA) followed by $797 (38.2% retracement & 55 Hourly EMA). Accumulating longs around $750 could be considered. (Gold: $785.60).

Dollar index : Dollar index rally continues trading 30 points higher than yesterday at 77.27 levels. The stochastic is at 96.93% and continues to be in the over-bought region.

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.