Forex Technical Update

Daily Forex Technicals | Written by Rcpl Forex | Sep 02 08 07:03 GMT |


Euro: Euro further declined yesterday by 147 pips to touch the low at 1.4555 in the late US session. The 4-hourly and the daily chart are showing selling pressure with next immediate support at 1.4376 (100 weekly EMA & 38.2% of the rise in monthly charts) where opportunities to long can be considered. (Eur/Usd: 1.4582).

Pound: Cable yet again broke past the important psychological support of 1.80 in the US session yesterday as it plunged to a low of 1.7848. The charts have flattened in the oversold region. Next support is witnessed at 1.75 levels. Shorts can be initiated around 1.7960 levels targeting 50 pips. However, a reversal could be witnessed anytime basis the interest rate decision due to release tomorrow. (Gbp/Usd: 1.7905).

Yen: USD/JPY pair weakened almost 100 pips touching 107.60 levels before regaining some strength to close at 108.14 levels. The major stochastic continues to show selling pressure with support coming in at 107.30 levels (100 daily & 21 weekly EMA). Initiate longs there for 50-60 pips. (Usd/Jpy: 108.24).

Rupee: The domestic currency further weakened to touch the intraday low at 44.25 before closing at 44.18 level as compared to the previous close at 43.93. The primary reason could be attributed to global strength in dollar and heavy dollar demand by importers and foreign banks. In the forward market, the premiums fell and the 6-mth forward dollar ended at 2.84 per cent (3.36) and the 12-mth closed at 2.58 per cent (2.86). (Usd/Inr: 44.18).

Swiss Franc: USD/CHF pair traded within 100 pips yesterday taking resistance at 1.1045 levels (50% Retracement of the fall in weekly charts). The charts are indicating slight buying pressure as they are heading towards the overbought region. Only if 1.1085 (recent high) is decisively broken, an upmove upto 1.13 levels can be witnessed else further consolidation between 1.0880 – 1.1080 will be seen. (Usd/Chf-1.1033).

Australian Dollar: Aussie weakened almost 112 pips yesterday to touch the low of 0.8466 pricing in the 25 bps rate cut expected today. The hourly and 4-hourly stochastic are showing are showing buying pressure with immediate resistance at 0.8555 (21 4-hourly EMA) breaking which Aussie can move upto 0.86 levels. Initiate shorts at higher levels. (Aud/Usd-0.8496).

Gold: Gold faced resistance at $835.55 yesterday and was pushed almost $20 lower. Gold has strong support at $809.36 (50% retracement of rise from $775 to rise of $ 843.90). The 4-hourly and hourly stochastic is oversold whereas the daily is moving towards the oversold region. On the downside $800 should hold and initiating longs there could be considered. (Gold: $816.50).

Dollar index : Dollar index retains strength trading at 77.81 levels currently with the stochastic highly overbought at 92.53%.

Brent Oil :Oil plummeted almost $6.60 yesterday as Hurricane Gustav weakened as it approached the US. The 4-hourly and daily stochastic are highly oversold where the immediate support is seen at $108.75 (100 weekly EMA) whereas on the upside $113.79 can be taken as resistance. (55 Weekly EMA) (Oil: $110.91)

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.