Forex Technical Update

Daily Forex Technicals | Written by Rcpl Forex | Sep 04 08 06:25 GMT |

Euro: Euro plunged to 1.4385 levels in yesterday's session witnessing a move of 144 pips. However, it recovered almost 115 pips from 100 Weekly EMA to close at 1.4498. The 4-hourly and hourly chart is moving towards overbought whereas the daily chart is showing buying pressure. The immediate cluster resistance is seen at 1.4545 (21 4hourly EMA & 38.2% retracement from the recent low) where intraday shorts can be initiated. Primary focus is on the ECB rate decision. (Eur/Usd: 1.4512). Pound: Cable has been crushed against the greenback as it further weakened to mark a low of 1.7666 in yesterday's session. Although Cable has recovered slightly and is trading around 1.7750 levels (21 Hourly EMA) currently with the hourly & 4-hourly charts indicating selling pressure. On the other hand the Daily & Weekly stochastic remain extremely oversold. Intraday bias remains on the downside. BoE interest rate decision is expected today and could be a vital factor for Sterling. (Gbp/Usd: 1.7753). Yen: The USD/JPY pair witnessed a sideways trading of 100 pips yesterday and took support at the 55 Daily EMA at 108.09. Currently, the pair is hovering around the same support zone with the charts heading towards the oversold region. Next immediate support comes in at 107.35 levels (100 daily EMA). Initiating longs there for 60 pips can be considered. (Usd/Jpy: 108.07). Rupee: Rupee market was closed yesterday on account of a holiday. After a volatile trading session on Tuesday where RBI intervention could not provide much respite to the falling rupee, the domestic currency has weakened almost 10 paisa today from its opening at 44.43 levels. Further weakness could be expected on global USD strength. (Usd/Inr: 44.53). Swiss Franc: Usd/Chf pair surged to a high of 1.1171 before closing little lower at 1.1061. The hourly and the daily chart are showing selling pressure whereas the 4-hourly chart is highly oversold. Immediate support comes in at 1.1005 (55 4-hourly EMA) where opportunities to initiate cautious long can be considered. (Usd/Chf-1.1058). Australian Dollar: Aussie dipped to a low of 0.8231 yesterday, however recovered taking support at the long term trendline and closed at 0.8358. The hourly and 4-hourly charts are indicating further selling pressure whereas the daily is turning oversold. Immediate resistance is at 0.8399 (21 4-hourly EMA) where opportunities to go short for 70-80 pips can be considered. (Aud/Usd-0.8338). Gold: Gold traded within $30 in yesterday's session touching a low of $788. The daily chart is moving towards oversold region whereas 4-hourly signals further selling. Immediate resistance comes in at $809 (21 4-hourly EMA). Downside could be curbed around $770. (Gold: $802.50). Dollar index : Dollar index continues to trade above 78 levels with the stochastic in the overbought region poised at 81.21%. 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.