Forex Technical Update

Daily Forex Technicals | Written by India Forex | Nov 07 08 07:37 GMT |

Euro: Euro that held tightly above the 1.28 levels before the ECB announced interest rate cut of 50 bps to 3.25% plummeted 280 pips to touch the low of 1.2655 in the late US session. Daily & Hourly stochastic are showing selling bias while the 4-hourly charts are highly oversold. Initiate shorts at cluster resistance of 1.2820 levels for 100 pips as the bias remains on the downside. (Euro: 1.2740). Pound: BOE surprised the global markets by making a record of cutting the interest rate by 150 bps yesterday wherein sterling witnessed a very volatile session by immediately falling more than 150 pips after the decision and bouncing back to touch the day's high of 1.6039. The primary reason could be attributed to short covering due to unexpected rate cut wherein after sterling declined to end the session at 1.5567 levels. Daily & Hourly charts indicate a downside while 4-Hourly charts are oversold. Retracement upto 1.5820 (21 4-hourly EMA) could be witnessed where short positions could be incorporated as the overall trend remains on the downside. (Gbp/Usd: 1.5666). Yen: The Usd/Jpy pair traded in a tight range yesterday holding 98.80 (100 4-hourly resistance). The 4-Hourly charts are due for correction in the oversold region while daily charts indicate a downside. Bias remains on the downside keeping in mind the medium term bottom of 96.08 as the next support. The cluster resistance of 98.25 could be held by the pair where intraday shorts can be targeted for 80 pips. (USD/JPY: 97.48). Rupee: The local currency could not sustain its strength although there was heavy dollar selling in the early session yesterday by large corporate. This was mainly due to the fall in the stock market for which further outflow of funds from Indian stocks is expected. The rupee closed at 47.71 levels yesterday. It is expected that losses in the overseas market can bring the rupee further down and possibility to surpass the 48 levels cannot be ruled out. (USD/Re: 47.74). Swiss Franc: Swissy surged in the yesterday's session holding good the resistance of 1.18 levels as it touched the highs of 1.1795. The daily & 4-hourly stochastic are overbought while the hourly indicate a downside. Currently, the support at 21 Hourly (1.1740) is holding which if broken decisively can bring the pair to 1.1665 levels (100 Hourly & 21 4-Hourly). Initiate shorts around 1.1820 levels targeting 80 pips. (Usd/Chf: 1.1760). Australian Dollar: Aussie was volatile yesterday moving within 270 pips and touched the day's highs of 0.6901 in the early US session & plunged later to close at 0.6641. The hourly stochastic is overbought & daily is indicating selling bias. Initial cluster resistance comes in at 0.6784 where shorts can be initiated for 80 pips. On the downside support around 0.60 looks strong for the pair. (Aud/Usd-0.6709). Gold: Gold shed close to $31 dollars yesterday though it surged in the early US session to touch the day's high of $760 levels. Hourly & Daily charts give bearish bias for gold while 4-Hourly charts are oversold. Currently it is holding below the 21 hourly EMA at $735 levels which if broken decisively can take the pair to cluster resistance of $770 levels where shorts can be initiated. On the downside $700 looks strong. (Gold: $735.60). Dollar index: Dollar index is trading at 86.51 levels with the stochastic being at 59.40%. 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.