Forex Technical Update

Daily Forex Technicals | Written by Rcpl Forex | Sep 15 08 07:06 GMT |

Euro: Euro's pullback rally was witnessed on Friday that took Euro from the lows of 1.3882 to 1.4480 (21 daily EMA) levels despite stronger Michigan Survey of the US. Strong resistance is expected at 1.4680 levels (38.2% retracement). The daily stochastic is supporting a strong upside while the hourly and 4-hourly is overbought and some downside could be witnessed. Initiate shorts around 1.4430-40 levels targeting 60 pips intraday.(Eur/Usd:1.4420). Pound: The long awaited relief rally in pound was witnessed in the late US session on Friday as USD delivers lower than expected PPI numbers. The hourly and 4-hourly charts show slight downside whereas the daily stochastic indicates buying pressure. Strong resistance is expected around 1.8390 level (200 4-hourly EMA) where shorts can be accumulated. On the downside support is at 1.7800 (21 & 55 EMA 4-hourly EMA). (Gbp/Usd: 1.8052). Yen: Usd/Jpy pair witnessed a 110 pips sideways movement on Friday's session, however opened weak with a gap today at 105.26 levels. The 4-hourly and daily stochastic are showing further downside. Upside could be curbed around 107 levels. Intraday shorts can be initiated at those levels since the bias remains on the downside for the pair. (Usd/Jpy 105.85). Rupee: Rupee was weakest since Nov 2006 this morning as it shied just 4 paisa from 46 levels as against its Friday's close of 45.75. Fall in Asian stocks still raises concerns of further fund outflow. Rupee fell 2.4% last week, taking the year's loss to 16% against the rampaging dollar. Easing of crude oil prices also adds to the rupee weakening. A short term reversal can be witnessed with rupee strengthening to 45 levels. Exporters should partially hedge their near term exposures. (Usd/Inr: 45.91). Swiss Franc: Usd/Chf pair weakened almost 110 pips from the highs of 1.14 levels on Friday. Further, the pair opened with a gap-down of almost 145 pips this morning and is currently trading around 1.11 levels. The hourly & 4-hourly charts are oversold while Daily & weekly charts are overbought and shows further correction. Crucial resistance comes in at 1.1225 levels (55 Daily EMA) where shorts can be considered targeting 1.10 levels. Focus is on the Swiss Retail Sales & PPI. (Usd/Chf: 1.1120). Australian Dollar: Aussies recovered almost 400 Pips in the last two trading sessions on the back of correction in USD against all major crosses and Gold. It is trading just above an important level of 0.8190 (55 4-hourly EMA). Sustained trading above this level may take AUD to 0.8330 (100 4-hourly EMA). However with overbought 4-hourly and hourly, slight correction upto 0.8170 levels could be witnessed. (Aud/Usd-0.7970). Gold: Gold rebounded strongly after touching the lows of $735 last week. Currently Gold is trading around $783 with resistance coming in at $803 (21 Daily EMA & 100 4-hourly EMA). Although the 4-hourly stochastic is extremely overbought, further upside upto $800 could be witnessed as daily chart is oversold. (Gold: $783.35). Dollar index : Dollar index touched the psychological 80 levels last week however, could not sustain at those levels. Currently trading at 77.67 levels, the stochastic indicates further downside at 60.41%. 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.