Forex Technical Update

Daily Forex Technicals | Written by India Forex | Oct 14 08 06:58 GMT |

Euro: The pair showed good recovery in yesterday's session as it touched 1.3682 levels bouncing back from the lows of 1.3258 levels. There was buying witnessed across the board as most of the currencies recovered against the dollar. Support for the pair is expected to come in at the cluster of 21, 55 and 100 hourly EMA's (1.3596). Immediate resistance is seen at the 55 four hourly EMA (1.3742). A break of this level may take the pair to the next resistance of 100 4-hourly EMA (1.3920). (Eur/Usd:1.3670).

Pound: Cable surged more than 500 pips in a single session yesterday from the lows of 1.6926. The hourly and 4-hourly stochastic are highly overbought and the immediate resistance is seen at 1.7648 (100 4-hourly EMA). However, the daily charts are indicating further upmove and a break of 1.7648 resistance can take cable further to 1.7710 levels (21 Daily EMA) where shorts can be entered targeting 80-100 pips. (Gbp/Usd: 1.7511).

Yen: Usd/Jpy pair surged almost 260 pips yesterday touching the highs of 102.17 and finally closed around 102 levels. Currently the pair is seen taking support around 102 levels (55 4-Hourly). Sustaining above these levels can push the pair upto 104 levels (21 Daily EMA & 50% Retrcament of the recent fall). The daily charts are indicating further upside whereas the 4-Hourly charts is overbought. Thus, shorts can be incorporated around 104 levels for 70-80 pips. (Usd/Jpy 102.21).

Rupee: Rescue plans for the banks & the pep talk by the finance minister has helped the local currency to strengthen this week. The rupee took a U-Turn from its all time low of 49.30 against US dollar last week to 47.75 today morning as against its yesterday's close of 48.25 since the stock markets show cues of recovery and the investors expect fund inflows. Forward premia on near-term contracts also went up. (Usd/Inr: 47.71).

Swiss Franc: The pair showed a movement of 200 pips in yesterday's trading session making a high of 1.1440 and a low of 1.1240. Support for the pair on the downside is seen at the 100 four hourly EMA (1.1222). The stochastic is indicating slight upside for the pair however, resistance for the pair could be met around 1.14 levels where shorts could be initiated. (Usd/Chf: 1.1322).

Australian Dollar: Aussie recovered strongly bouncing more than 450 pips yesterday from the lows of 0.6540. The rally was backed by the statements of RBA to inject liquidity in money markets to bailout as many banks. The pair is currently taking resistance at the 200 hourly EMA (0.7126). A break of this level may take the pair further to the 100 four hourly EMA (0.7476). Immediate support on the downside is seen at the 100 hourly EMA (0.6889). A short term bottom seems to be placed at 0.6327 levels.(Aud/Usd-0.7090).

Gold: Gold opened to touch the high of $871.90 yesterday but plummeted by $49 to touch the low of $822.80. The 4hourly stochastic is showing buying pressure whereas the daily chart is approaching the oversold region. The immediate cluster resistance is seen at $864.51 (21 & 100 4hourly EMA) whereas on the downside $833.54 should hold (50% retracement from the high of $931.03). (Gold: $844.15).

Dollar index: DI has again retraced back to 81 levels after touching the 15-month high of 83 levels with the stochastic indicating selling pressures poised at 83.19%.

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.