Forex Technical Update

Daily Forex Technicals | Written by India Forex | Nov 21 08 09:18 GMT |

Euro: Euro fell to 1.2423 levels in the early trade today however, has mildly recovered and trading around 1.25 levels currently. The daily and hourly stochastic is showing further downside while the 4-hourly is neutrally poised. Immediate resistance comes in at 1.2562 (21 4-hourly EMA) where intraday shorts for 40-50 pips can be initiated. The overall trend remains on the downside below the important resistance of 1.2758 (21 Daily EMA). Shorts can be initiated around 1.2700 -2750 levels for 100-120 pips. (Eur/Usd: 1.2510). Pound: Cable shed almost 280 pips yesterday taking the resistance of the falling trendline and plunging to 1.4712 levels. Currently trading around 1.4850 levels, the hourly is overbought while the 4-hourly is neutral. On the upside the immediate resistance comes in around 1.49 (trendline and 21 4-hourly EMA) which should be considered as a good selling opportunity intraday. The overall bias remains weak for this currency pair. (Gbp/Usd: 1.4845) Yen: USD/JPY pair broke the short-term rising trendline and plunged to 93.55 levels. The hourly chart has flattened in the overbought region while the daily is showing further downside. Immediate support comes in around 93.55 (yesterday's low) breaking which yen can reach the 90.90 levels. Intraday shorts around 95.50 (21 4-Hourly EMA) for 80-90 pips. (Usd/Jpy 95.00) Rupee: Rupee plunged further to make a record low in the early trade today touching 50.60 as traders braced for yet another fall in stocks and withdrawal of funds by investors after having heavy losses with crude also falling below $50 a barrel. RBI was seen intervening yesterday with inflation figures also softening to 8.9% giving RBI to cut interest rates further. Currently Rupee has mildly strengthened and is trading around 50.15 with the stocks positive and most of the Asian markets also green. However, the road ahead for rupee remains rough. (USD/Re: 50.14) Swiss Franc: The pair surged 1.2286 in the early trade today as swissy was surprised by a 100 bps cut yesterday. The sell-off of chf was witnessed as the pair surged 175 pips yesterday despite the charts getting overbought and better than expected swiss trade balance. The charts remain flat in the overbought region indicating further weakness in swiss franc. Immediate support comes in at 1.2138 levels where longs can be considered for 80 pips. Medium term target – 1.28 (100 Monthly EMA). (Usd/Chf: 1.2259) Australian Dollar: The pair further weakened to touch 0.6076 levels (almost 340 pips) in yesterday's session. Recovering mildly, Aussie is currently trading around 0.62 levels with the 4-hourly stochastic showing an upside. The immediate resistance comes in around 0.6272 beyond which is 0.6335 levels (21 4-hourly EMA & 50% retracement of the fall in 4-hourly). Shorts can be initiated there for 70-80 pips. (Aud/Usd-0.6209). Gold: Gold moved up $20 from the lows of $732 in yesterday's trade. It attempted to break the consolidation of $750 - $733 levels but immediately retraced back to close the session at $745 levels. The 4-hourly and hourly are reaching the overbought region with the resistance coming in around $765 (200 4-hourly) thus going short on gold around those levels can be considered. (Gold: 757.40) Dollar index: Dollar index is holding and trading strongly above 88 levels with the stochastic around 73.65%. 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.