FX Technical Analysis

Daily Forex Technicals | Written by Mizuho Corporate Bank | Nov 12 08 07:57 GMT |

EURUSD Comment: Dropping below the small 'triangle' and at-the-money implied volatility rallies from a still relatively expensive 21.00% to 23.50%. Let's see if we can hold above this year's low at 1.2329 for the rest of this week. Strategy: Attempt longs at 1.2600; stop below 1.2475. First target 1.2700, then 1.3000. Direction of Trade: → Chart Levels: Support Resistance 1.2540 " 1.2617 1.2477 1.27 1.2445 1.28 1.2395 1.2927 1.2329** 1.3000* GBPUSD Comment: Re-testing the recent low at 1.5260 with a low at 1.5347 this morning as one-month at-the-money implied volatility rallies from 22.00% and should move back up to this year's high at 29.45%. Strategy: Possibly attempt tiny longs at 1.5465; stop below 1.5300. First target 1.5800 then 1.6000. Direction of Trade: → Chart Levels: Support Resistance 1.5557 " 1.58 1.5535 1.5885 1.5400* 1.605 1.53 1.62 1.5278/1.5260** 1.64 USDJPY Comment: Subtly looking marginally more top-heavy as we test the lower edge of 'triangle' consolidation. One-month at-the-money implied volatility appears to have based at 20.00% and looks set to move back up towards 32.00%. Strategy: Attempt shorts at 97.75 but only if prepared to add to 99.00; stop well above 100.00. First target 97.00, then 96.00 below which should probably trigger a sudden collapse to 92.00 Direction of Trade: → Chart Levels: Support Resistance 97.15 " 98.31 97 99.47 96.75 99.92 96.35 100.56* 96.08* 101.6 EURJPY Comment: Testing the lower edge of the recent consolidation band as pressure on unwinding of the 'carry trade' and emerging markets escalates a little further. Strategy: Possibly attempt tiny longs at 123.50; stop/reverse below 121.00 for 118.00, maybe 116.00. Cover longs between 128.00 and 130.00. Direction of Trade: → Chart Levels: Support Resistance 122.00 " 123.61 121.23* 125.5 120 126.15 118 127.65 117 130.00* 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.