Forex Technical Update

Daily Forex Technicals | Written by India Forex | Jan 12 09 08:59 GMT |

Euro: Euro plunged almost 330 pips in the last trading session as the U.S. Non-Farm Payrolls (better than expected) played a key role. Euro's overall outlook for the week remains slightly bleak with the Euro trade balance and ECB interest rate decision coming up later this week. The charts continue to indicate further downside and short positions can be accumulated around 1.36 & 1.37 levels for 200-300 pips gain. (Eur/Usd: 1.3388). Pound: Cable started the week by opening with a gap-down of about 90 pips at 1.5075 and is currently trading in a small range. The daily charts are exteremely overbought while the 4-hourly is getting oversold. Upside upto 1.52 and then 1.54 could be witnessed where shorts should be targetted. On the downside 1.4935 (21 Daily EMA) has become an important support. Break of this level can bring Sterling rolling down to 1.45 levels. (Gbp/Usd:1.5090). Yen: Dollar-Yen pair shed around 150 pips in Friday's session facing strong resistance from the 21 Daily EMA. The pair opened slightly lower today and is trading around 90 levels currently. Immediate cluster resistance comes in at 91.50 levels (100 & 200 Hourly EMA & 100 4-hourly EMA) with the daily charts yet to correct towards oversold region. Intraday shorts can be initiated there for 80 pips gain. (Usd/Jpy: 90.12). Rupee: The local unit was volatile on Friday and touched intraday trough of 49.28/$ in the early trade. This was primarily due to the news of Satyam scam. However, due to heavy selling of dollar in the later session the rupee appreciated and closed at 48.28/$ which was 1.1% higher than previous close of 48.80/$. Today due to the falling stocks the local currency can again witness depreciation. (USD/INR: 48.58). Swiss Franc: Usd-Chf pair surged 300 pips on Friday making a high of 1.1186 and closing a little lower at 1.1138. Currently it is taking support at 21 daily EMA (1.1116) from where it can surge higher as the daily charts are turning mid-way to indicate slight upside. Resistance comes in at 1.1277 (100 Daily EMA and 38.2% retracement of the rise in weekly charts) where shorts for 80 pips gain can be initiated. (Usd/Chf: 1.1163). Australian Dollar: Aussie traded in a sideways range on Friday witnessing 110 pips movement. Daily charts are showing further downside, however, Aussie is tinkling around the important support zone at 0.6930 levels (55 & 21 Daily EMA). If this level is broken decisively then aussie may take the next support comes at 0.6850 levels (200 4-hourly EMA). (Aud/Usd-0.6925). Gold: Gold gained from the 21 daily EMA ($844) on Friday and soared to touch the highs of $868. The daily charts are moving upward while the hourly and the 4-hourly charts are giving a downside bias for the yellow metal. Resistance comes at $854 levels where intraday shorts can be considered for $10-$12. Support remains at the 200 daily EMA at $832 levels. (Gold: $855.15). Dollar index : DI is trading higher at 83.59 levels with the stochastic almost flat at 64.47%. 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.