Forex Technical Update

Daily Forex Technicals | Written by India Forex | Oct 03 08 06:55 GMT |

Euro: The pair lost around 250 pips in yesterday's trading session from the highs of 1.4026 to test 1.3746. Although, the ECB kept interest rates unchanged yesterday; the approval of the bailout package in US helped the USD appreciate against EUR. We expect a good support for the pair to come in at the 200 weekly EMA (1.3560) on the downside. The overall scenario still remains bearish for the pair. However, the Non Farm Payrolls today can take euro upwards, where sell should be incorporated. (Eur/Usd:1.3860).

Pound: Cable was dragged to 1.7550 levels yesterday before recovering mildly. Currently cable is trading around 1.7720 levels (55 hourly EMA) with hourly and 4-hourly stochastic reaching the overbought region. Immediate resistance comes around 1.78 levels (21 4-hourly EMA). However, with the non farm payrolls expected to tumble, Cable may surge upto 1.7850 and beyond in the US session supported by the extremely oversold daily stochastic. Alternatively, the overall sentiment remains bearish and selling is recommended at higher levels. (Gbp/Usd: 1.7724)


Yen : Usd/Jpy pair shed about 120 pips yesterday touching the lows of 105.08. The 4-Hourly stochastic is indicating an upside whereas the hourly and daily is indicating some selling pressure. Immediate resistance for the pair comes around 105.80 levels (cluster resistance) which if broken decisively can push the pair upto 106.80 levels (55 & 100 Daily EMA). Initiate longs around 103.60 - 104.00 levels. (Usd/Jpy 105.27)

Rupee: Rupee made a fresh 5-year low by touching 47.30 in the early morning session today but immediately made a comeback as the banks sold dollars heavily bringing rupee to 47 levels. It closed at 46.63 on Wednesday while Thursday was the Indian bank holiday. The rupee remains under pressure from the growing international risk-aversion in the financial space along with widening Indian trade deficit. (Usd/Inr: 46.87)

Swiss Franc: Usd/Chf pair rallied around 200 pips touching 1.1412 levels from the lows of 1.1233. We expect support for the pair at the 21 4-hourly EMA around 1.1220 with the 4-hourly stochastic also reaching the oversold region. A buy position at 1.1240 levels could be taken targeting upto 70 pips on the upside. Immediate resistance for the pair is seen at the previous high of 1.1412 where shorts for 80 pips can also be targeted. (Usd/Chf: 1.1315)

Australian Dollar: AUD lost around 240 pips from the days high of 0.7942 and made a new low of 2008 at 0.7688. Immediate resistance for the pair is seen at the 55 hourly EMA at 0.7860. The hourly stochastic is also trading in the overbought region. We recommend a short position around 0.7860 levels targeting around 50-60 pips. Contrarily, the daily and 4-hourly charts is reaching the oversold region so on the downside support could be traced at the 100 monthly EMA around 0.7480 levels. (Aud/Usd-0.7800).

Gold: Gold plummeted $46 yesterday to touch the low of $829.80 (50% Retracement) before closing at $836.20. The hourly stochastic is highly overbought whereas the 4-hourly & daily charts are oversold. The immediate cluster resistance can be seen at $859.21 (21 4-hourly EMA & 200 daily EMA) whereas the support comes around $829 levels where cautious longs can be considered. (Gold: $844.65).

Dollar index : Dollar index that measures dollar's value against a basket of six major currencies further strengthened and is trading above 80 levels. However, the stochastic is overbought at 85.92%.

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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.