Forex Technical Update

Daily Forex Technicals | Written by India Forex | Nov 05 08 07:13 GMT |

Euro: Euro witnessed a very volatile trading session yesterday as it surged more than 500 pips from the lows of 1.2526 and making a reversal bar pattern in the daily chart. Taking resistance at the 100 4-hourly EMA around 1.3040 levels in the overnight session, Euro is trading weaker at 1.2850 currently. The 4-hourly stochastic is overbought and showing a strong down-move supported by the disappointing Eurozone Retail Sales expected today. Shorts should be considered at higher levels. (Euro: 1.2840). Pound: Cable strengthened around 500 pips in the mid-US session yesterday moving up strongly to touch 1.61 levels. Currently cable has retraced and is trading around 1.59 levels with the hourly, 4-hourly and daily charts showing strong selling pressure with immediate support coming in around 1.5590 levels. Overall bias continues to remain on the downside with BOE also expected to cut interest rate tomorrow. Selling at every retracement should be considered. (Gbp/Usd: 1.5895). Yen: The USD/JPY pair gained almost 220 pips touching the high of 100.55 in yesterday's session surpassing the 21 Daily EMA at 99.61. The hourly and 4-hourly stochastic is showing a downside and if the pair is able to break the 99.60 levels then we may witness a further downside upto 98.30 levels (55 4-hourly EMA). (USD/JPY: 99.68). Rupee: Rally in the stock market with the expectation that the rally would continue allowed the local currency to post the biggest intraday rise on Tuesday since 1998. Rupee closed at 47.74 yesterday and touched intraday high of 46.70 this morning. It was observed that unwinding of long positions of USD by the banks and heavy dollar sales by the big corporate aided the rupee to rise. This brings some hope for Dollar inflow in the Indian market. Though the liquidity remained neutral, trend remains still unclear. (USD/Re: 47.20). Swiss Franc: The pair shed most of its previous day's gains melting down from the highs of 1.1800 to the day's lows of 1.1566 on Tuesday. The hourly & daily stochastic are overbought while the 4-hourly is indicating some buying pressure. Immediate resistance continues to remain at 1.1890 levels (200 Weekly EMA). On the downside support for the pair is seen at 1.1670 levels (21 hourly EMA) which if broken can push the pair down to 1.1550 levels. Initiate shorts at resistance levels for 100 pips (Usd/Chf: 1.1720). Australian Dollar: Aussie rose close to 415 pips yesterday touching the highs of 0.7015. The hourly stochastic is indicating some buying pressure while the 4hourly has just corrected in the overbought region. Support comes in at 0.6760 levels which should hold good. Resistance for the pair is seen at 0.7130 (200 4hourly EMA) to initiate intraday shorts for 80 pips (Aud/Usd-0.6886). (Aus/Usd: 0.6938). Gold: Gold gained $46 yesterday and took resistance of 100 4-Hourly to close the session at $762 levels. Hourly charts are approaching the oversold region and the 4-Hourly charts have corrected in the over-bought region. Initial support is coming in around $740 levels. On the upside $770 levels should hold. The bias for the yellow metal remains on the downside. (Gold: $755.60). Dollar index: Dollar index is extremely volatile and has bounced back to 85.80 levels with the stochastic at 63.14%. 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.