Forex Technical Update

Daily Forex Technicals | Written by Rcpl Forex | Aug 28 08 08:04 GMT |

Euro: Euro remained highly volatile yesterday as it traded within 131 pips to recover from the day's low of 1.4633 to close 1.4727. The hourly and 4-hourly stochastic is moving towards the overbought region together-with the daily chart indicating buying pressure. Euro is tinkling around the 1.48 (55 4-hourly EMA) strong resistance levels surpassing which the pair can move upto the next resistance of 1.4920 levels (100 4hourly EMA & 21 daily EMA) where shorts can be initiated. (Eur/Usd: 1.4778).

Pound: Cable came under pressure in the early US session yesterday as it plummeted to make a fresh low at 1.8284 levels. Cable has recovered mildly and is trading around 1.8360 levels. Although, the hourly chart is showing selling pressure, the 4-hourly and daily is indicating buying pressure. Initiate longs around 1.8320 levels targeting 60 -70 pips intraday. The overall bias continues to remain on the downside selling pressure dominates. (Gbp/Usd: 1.8365).

Yen: The USD/JPY pair retreated upto 108.70 levels before recovering in the US session to close at 109.48 levels yesterday. The 4-hourly, daily & weekly stochastic is showing selling pressure whereas the hourly is moving towards oversold region. The pair is facing stiff resistance at 110.30 levels (horizontal trendline) against which further consolidation can be witnessed. Initiate shorts around 109.50 levels for 70-80 pips.(Usd/Jpy: 109.12).

Rupee: After hitting the 17-month low of 44.16 earlier this week, Rupee has retreated mildly as it gained 10 paisa in yesterday's session to close at 43.76 from the intra-day low of 43.90 due to dollar selling by banks. In the forward market, the 6-mth premium closed at 2.93 percent (2.98) and the 12-mth ended at 2.55 percent (2.54). (Usd/Inr: 43.73).

Swiss Franc: The USD/CHF pair weakened intraday as it surged to 1.1023 levels at the back of stronger durable goods from the US before closing weak at 1.0954 yesterday. The 4-hourly chart is moving towards oversold territory with immediate support at 1.0851 levels (100 4-hourly EMA) where initiating longs can be considered. (Usd/Chf-1.0915).

Australian Dollar: Aussie succumbed to 0.8530 levels in the early US session yesterday before recovering to 0.8660 levels this morning. The Daily & Weekly charts indicate buying pressure while the 4-hourly and hourly is moving towards overbought. Cluster resistance comes around 0.8680 levels (55 4-Hourly EMA & 61.8% Retracement of the recent fall in 4-hourly). Decisive break of this resistance can push Aussie to 0.8880 levels. Initiate longs around 0.8620 levels. (Aud/Usd-0.8676).

Gold: Gold was quite volatile yesterday even though the metal traded within a narrow range of $14 to touch the day's low of $822.65. The 4-hourly stochastic is moving towards the overbought region with immediate resistance coming at $837 (100 4-hourly EMA & 21 daily EMA) breaking which Gold can surge upto $850 (55 Weekly EMA) (Gold: $832.50).

Dollar index : Dollar index continues to face crucial resistance at 78 levels and has retraced almost 30 points to 76.85levels today with the stochastic at 77.06%.

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.