Forex Technical Update

Daily Forex Technicals | Written by India Forex | Dec 11 08 08:43 GMT |

Euro: Euro gained 166 pips yesterday from the lows of 1.2903 levels. The Major stochastic are overbought. Resistance comes in at 1.3160 (55 daily EMA) where intraday shorts can be considered for 60 pips. If this resistance is broken decisively then Euro may surge upto 1.3290 levels. On the downside 1.2845 (21 daily EMA) is a good support. (Eur/Usd:1.3132). Pound : Cable was seen taking support around 1.4750 levels (short-term rising trendline) yesterday whereas the upside was confined around 1.4878. Cable has strengthened mildly and is expected to first take resistance around 1.50 levels (100 4-hourly EMA & 50% Retracement of the recent fall). However, a break of this level can take cable further up to 1.5290 levels. Shorts should be initiated at resistances cautiously. (Gbp/Usd: 1.4920). Yen: The USD/JPY pair witnessed another range-bound session of 90 pips yesterday as it testing the bids at 92.18. The Daily & 4-hourly charts are hinting further downside while the hourly is getting oversold. Upmove first upto 93.77 (38.2% Retracement) could be witnessed, breaking which the pair can rally upto 94.40 (21 Daily EMA & 50% Retracement). Shorts on the pair can be initiated there for 70 pips. (Usd/Jpy : 92.33) Rupee : After the flat closing on Monday, the local unit showed a rise of 1.21% yesterday which was mainly due to boost in the Indian shares. It touched as low as 48.88 yesterday but closed lower around 49 levels towards the end of the session as dollar buying was witnessed. This strength in rupee is expected to continue as the Indian market looks attractive for the FIIs to invest as the shares holds hopes. Indian Inflation would be the focus today. (USD/Re: 48.55) Swiss Franc : Swissy appreciated against the USD yesterday due to the good Zew data released. It touched the highs of 1.1925 before closing the session around the 21 daily EMA at 1.1979. The hourly & 4-hourly stochastic are oversold while the daily charts still have room to reach the oversold region. Support is seen at 1.1882 (200 4-hourly EMA). Intraday longs on the pair can be considered at those levels. Swiss is expected to cut rates by 50 bps today. (Usd/Chf: 1.1940) Australian Dollar : Aussie traded in a thin range of about 90 pips yesterday holding below the 200 4-hourly EMA (0.6638). The 4-hourly & hourly stochastic are showing further upmove while the daily charts are getting overbought. Intraday shorts can be considered at 0.6640 levels for 60 pips. However, if 0.6640 is broken decisively then next resistance is seen at 0.69 levels (55 Daily EMA). (Aud/Usd-0.6618) Gold : Gold surged $38 yesterday touching the highs of $812 levels proving the most attractive commodity for the investors. It shed some of its gain in late US session to close at $809 due to major profit-takings. Although the stochastic are overbought, further scope for the yellow metal to rise can be seen. Resistance is seen around $828 levels where shorts can be considered. On the downside support comes at $782 levels. (Gold: $812.50) Dollar index: Dollar index is trading at 85.21 levels with the stochastic moving further down at 23.09%. 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.