Forex Technical Update

Daily Forex Technicals | Written by India Forex | Oct 22 08 07:10 GMT |

Euro: Euro plummeted by 300 pips yesterday to touch the low of 1.3051 (20 month low). The major stochastic are highly oversold and the immediate support can be seen at 1.2600 levels (100 monthly EMA). On the upside immediate resistance can be seen at 1.3263(21 4hourly EMA). Initiate intraday shorts at higher levels (Euro/Usd 1.2868). Pound: Sterling nose-dived yesterday by 545 pips to touch the low of 1.6652. The pair is currently trading at its 5 year low at 1.6420 with all the major stochastic highly oversold. The immediate support can be seen at 1.6000 (psychological) where cautious longs can be entered whereas intraday shorts at higher levels can be considered. Todays focus lies on the BOE minutes (Gbp/Usd: 1.6422). Yen: The Usd/Jpy pair shed its previous day's gains from the highs of 102.15 to touch the bids of 100.06 levels yesterday. The major stochastic are indicating downtrend keeping in mind the medium term bottom of 97.90 as the next support. The immediate resistance of 101.20 could be held by the pair (21 4-hourly & 100 Hourly) where shorts can be targeted for 100 pips. (Usd/Jpy 99.64). Rupee: The local currency was trading in a tight range yesterday as the RBI workers did not intervene because of the union strike. Today morning rupee opened weak at 49.28 against the USD due to heavy dollar demand by the importers & capital outflow. Undertone for the local unit still remains bearish with the dollar gaining against the major currencies. Rupee has depreciated almost 20% this fiscal. Focus is on RBI intervention today, after the discharge of the union strike. (USD/INR: 49.25). Swiss Franc: The pair's rally continues further as it touched the highs of 1.1589 yesterday. The daily & 4-hourly stochastic indicate bullish bias for the pair though hourly charts are overbought. Initial support for the pair is seen at 1.1545 (21 hourly EMA) which if broken can push the pair down to cluster support of 1.1480 levels. Initiate shorts at the higher levels (Usd/Chf: 1.1620). Australian Dollar: Aussie plunged by 325 pips yesterday touching the low of 0.6707 after touching the high of 0.7032. The hourly stochastic is approaching the oversold region whereas the 4hourly chart is showing some buying pressure. Resistance for the pair is seen at 0.6862 (21 4hourly EMA) where shorts can be initiated for 80 pips (Aud/Usd-0.6656). Gold: Gold plummeted by $38 yesterday after touching the highs of $803.20 to touch the low of $765.40. All major stochastic are highly oversold and the immediate horizontal trend line support comes in at $735 whereas on the upside the yellow metal could test $785.74 (100 weekly EMA). (Gold: $761.60). Dollar index : Dollar index seems extremely strong as it surpassed the 84 levels to currently trade at 85.94 levels with the stochastic extremely overbought at 95.76%. India Forex http://www.indiaforex.in 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.