FX Technical Analysis

Daily Forex Technicals | Written by Mizuho Corporate Bank | Nov 05 08 07:06 GMT |

EURUSD Comment: Still in consolidation mode and the corrective move should continue for another week at the very least. For this morning expect a re-test of 1.3000 with a sustained break above here setting off a short-squeeze back up to 1.3300. Strategy: Attempt longs at 1.2900, adding to 1.2800; stop below 1.2495. First target 1.3000, then 1.3300. Direction of Trade: → Chart Levels: Support Resistance 1.2850 " 1.3 1.2795 1.3032* 1.27 1.31 1.2665 1.32 1.2527* 1.3300* GBPUSD Comment: Still rather precarious as we try to base, or at least take a breather. Expect a lot more correction and consolidation this month. Strategy: Attempt longs at 1.5880, adding to 1.5600; stop below 1.5400. First target 1.6000 then 1.6400 and probably 1.7000 later this month. Direction of Trade: → Chart Levels: Support Resistance 1.5755 " 1.6014 1.56 1.611 1.5400* 1.629 1.53 1.635 1.5260** 1.64 USDJPY Comment: Correcting half of the summer's decline in what we see as a bounce followed by consolidation that should take up much of November. We continue to favour another upside probe this week, to 102.00 and probably no higher than 103.00. This might also see implied volatility edge back up though not as high as October's record high of 43.50%. Strategy: Possibly attempt small shorts at 99.65; stop above 100.65. First target 98.35, then 97.00. Direction of Trade: → Chart Levels: Support Resistance 99.27 " 99.93 98.2 100.56* 97.4 100.75 96.35 101 96.08* 101.6 EURJPY Comment: Retracing 61% of the final leg lower and at the higher end of the recent consolidation range. If not today then later this month we shall allow for another upside push to 133.00 and probably 135.00. Then watch for signs of topping between here and the 140.00 area. Strategy: Attempt longs at 128.50; stop/reverse below 122.00 for 114.00. First target 131.00, then 133.00 Direction of Trade: → Chart Levels: Support Resistance 127.23 " 129.5 126 130.2 124 130.98/131.05* 123.43 132 122.00* 133 Mizuho Corporate Bank Disclaimer The information contained in this paper is based on or derived from information generally available to the public from sources believed to be reliable. No representation or warranty is made or implied that it is accurate or complete. Any opinions expressed in this paper are subject to change without notice. This paper has been prepared solely for information purposes and if so decided, for private circulation and does not constitute any solicitation to buy or sell any instrument, or to engage in any trading strategy.