Forex Technical Update

Daily Forex Technicals | Written by India Forex | Oct 08 08 08:31 GMT |

Euro: The pair recovered around 260 pips from the days lows of 1.3480 and made a high of 1.3740 in yesterdays trading session. It took resistance at the 100 hourly EMA and is currently trading at 1.3620. We expect resistance to come in again at the 100 hourly EMA. As the hourly and four hourly stochastic both are indicating selling pressure a short position could be generated at 1.36 levels targeting 60 pips. (Eur/Usd:1.3587).

Pound: Cable recovered almost 300 pips yesterday after making a low of 1.7316 and made a high of 1.7657. The pair is currently trading at 1.7540 and is expected to witness resistance at the 100 hourly EMA (1.7600). A short position could be generated at these levels targeting upto 100 pips on the downside. Immediate support for the pair is seen at the 200 monthly EMA (1.7375). (Gbp/Usd: 1.7530).

Yen: The USD/JPY pair almost made a doji yesterday by opening and closing around 101.50 levels and witnessing 222 pips overall movement. The charts are indiacting a selling bias for the pair and decisive break of 100 levels can take the pair further lower to 98 levels largely due to risk aversion and unwinding of carry trades. Initiate shorts around 102.40 levels for 100 pips profit. Alternatively, opportunities to buy around 100 for 70 pips can be considered. (Usd/Jpy 101.10).

Rupee: Global crisis & huge foreign fund outflow has brought rupee to a 6 year low at 48.33 against the USD this morning weakening from yesterday’s close of 47.91. The rupee has depreciated close to 19% this year with the net fund outflow of almost $9.4 bn so far from Indian stocks. The CRR cut of 50 bps did not help rupee revive and further bearishness cannot be ruled out. The premias are now trading at discounts till September ’09.(Usd/Inr:48.27).

Swiss Franc: Usd/Chf pair traded in a sideways range but corrected around 130 pips yesterday making a high of 1.1485 and a low of 1.1359. Immediate support for the pair is seen at the 100 hourly EMA(1.1348) levels. A break of this level on the downside may take it further to 1.1253(200 hourly EMA). On the upside immediate resistance is expected at the recent high of 1.1485 level. (Usd/Chf: 1.1441).

Australian Dollar: The pair did not show a convincing recovery as compared to other currencies against dollar mainly because of the surprise 1% cut by the RBA. It was continuously taking resistance around 21 hourly EMA(0.7300) levels. We expect the downtrend to continue in the pair. Short positions are recommended at the 55 hourly EMA(0.7270) targeting upto 70 pips on the downside. (Aud/Usd-0.6868).

Gold: Gold surged $34 yesterday to touch the high of $890.60. The hourly stochastic is highly oversold whereas the 4hourly chart is approaching the overbought territory. Immediate support is seen at $866 levels (21 4hourly EMA & 100 daily EMA) whereas on the upside $900 level forms a good resistance. (50% Retracement). (Gold: $881.65).

Dollar index: Dollar index is trading in the sideways range & is currently around yesterday’s 81 levels with the stochastic being neutrally poised in overbought region at 90.25%.

India 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.