Forex Technical Update

Daily Forex Technicals | Written by India Forex | Nov 12 08 08:20 GMT |

Euro: Euro came under pressure as dollar strengthened in the mid-US session yesterday, despite a holiday there touching the lows of 1.2476. The 4-Hourly and daily stochastic are flattening in the oversold region which indicates further downward bias. Initiate shorts around 1.26 – 1.2640 levels (38.2% of the recent fall in 4-hourly) for 80-100 pips. (Euro: 1.2560) . Pound: Sterling shed close to 345 pips in the U.S. Session yesterday & touched the bids of 1.5360 levels despite good UK trade balance. The daily & 4-Hourly charts are oversold while the hourly charts indicate further downside. Initiate shorts higher (Around 1.5560 & 1.5610) as the bias remains on the downside and expectation for cable to retest 1.5250 levels cannot be ruled out. Focus is on the BOE inflation report today. (Gbp/Usd: 1.5432). Yen: The Usd/Jpy pair traded in a thin range of 100 pips in yesterday's session touching the low at 97.30. All major stochastic is indicating further downside for the pair and retracements should be considered for selling dollar. Immediate support comes in at 96.70 breaking which the pair can succumb to 91 levels. Initiate shorts on the pair around 98 levels for 60-70 pips. (USD/JPY: 98.05). Rupee: The local currency could not sustain much of it gains as it closed lower at 48.13 yesterday as against its Monday's close of 47.33. The dollar gained strength against the major currencies due to the dollar demand by the banks and importers with melting global equities. The rupee is expected to retest the 49 levels as bias still remains on the downside, further on RBI intervention can be looked upon. (USD/Re: 48.67). Swiss Franc: Swiss Franc strengthened yesterday as it surged up by 160 pips surpassing the 1.18 level. It touched the day's high of 1.1881 (200 weekly EMA) yesterday. The daily & 4-hourly charts are extremely overbought & the hourly indicate further upside. Resistance of 200 Weekly still holds good for the pair which if broken can test the 1.20 levels. (Usd/Chf: 1.1780). Australian Dollar: Aussie fell 280 pips yesterday touching the bids of 0.6476 & closed the session at 0.6560. The hourly & daily charts indicate a downside for the pair while 4-hourly charts are neutral. 0.6700 (21 4-hourly and 100 hourly EMA) can be a good level to go short on Aussie for intraday 80 pips. On the downside the recent lows of 0.60 can be tested. (Aud/Usd-0.6629). Gold: Gold plunged close to $24 yesterday loosing most of the shine in late US session to close at $744 levels. The hourly charts have just corrected in the overbought region while the 4-Hourly & Daily charts are neutrally poised. Initial resistance comes in at $742 levels (55 4-Hourly & 200 Hourly). On the downside $705 can be retested. Initiate shorts around $742 - 44 levels for intraday as bias remains on the downside. (Gold: $736.60). Dollar index : Dollar index strongly moved up to test the 87 mark with the stochastic being at 74.18%. 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.