FX Technical Analysis

Daily Forex Technicals | Written by Mizuho Corporate Bank | Sep 15 08 06:14 GMT |

EURUSD Comment: A massive 'spike low' and 'doji' on the weekly chart, gapping higher today, as we recover from the sharpest ever sell-off. We ought to see follow-through to this move this week allowing the Euro to recover towards 1.4900. Strategy: Buy at 1.4395, adding to 1.4255; stop below 1.4140. Short term target 1.4700, then 1.4900. Direction of Trade: ↗ Chart Levels: Support Resistance 1.4340 1.4482 1.4255* 1.4500 1.4150 1.4545 1.4045 1.4700 1.3882** 1.4900* GBPUSD Comment: Bouncing strongly from very oversold levels. Expect more follow-through today as we rally towards retracement resistance and the 26-day moving average at 1.8350. Strategy: Buy at 1.8110, adding to 1.7935; stop below 1.7750. Short term target 1.8300, then 1.8600. Direction of Trade: ↗ Chart Levels: Support Resistance 1.7995 1.8125 1.7935 1.8280 1.7835 1.8350 1.7665 1.8500 1.7535 1.8600 USDJPY Comment: Gapping lower in holiday-thin markets as we break below the Ichimoku 'cloud'. This is very thick and should cap prices this week, bearing down over the coming month, as financial markets unravel quickly. Think, evaluate carefully, move tactically, and remember, cash is king. Strategy: Sell at 105.85, adding to 106.70; stop well above 107.25. Short term target 105.50/105.25, then 104.00 and the 103.25. Direction of Trade: ↘ Chart Levels: Support Resistance 105.50 106.15 105.26* 106.70 104.99 106.90 104.40 107.25* 103.77* 108.00* EUR/JPY Comment: Yen crosses are taking a breather as we let other currencies catch up. We continue to expect consolidation today, and maybe all week, as we prepare for another massive slide later this month. Strategy: Sell at 152.30; stop well above 153.60. Short term target 150.85, then 149.75 again. Direction of Trade: →↘ Chart Levels: Support Resistance 151.90 153.00 150.81 153.56 150.60 154.00 150.15 156.00 149.50 157.01* Mizuho Corporate Bank Disclaimer The information contained in this paper is based on or derived from information generally available to the public from sources believed to be reliable. No representation or warranty is made or implied that it is accurate or complete. Any opinions expressed in this paper are subject to change without notice. This paper has been prepared solely for information purposes and if so decided, for private circulation and does not constitute any solicitation to buy or sell any instrument, or to engage in any trading strategy.