Forex Technical Update

Daily Forex Technicals | Written by India Forex | Feb 03 09 08:48 GMT |

Euro: Euro bounced back strongly from the lows of 1.2706 in yesterday's session to touch 1.29 levels. Currently trading around 1.29, the hourly & 4-hourly charts are getting overbought. Immediate resistance comes at 1.2915 (100 Hourly EMA) and then at 1.2945 (38.2% Retracement of the recent fall) where shorts can be initiated for intraday 80-90 pips. The daily charts are reaching the oversold region so avoid holding short positions. (Eur/Usd:1.2901). Pound: Cable witnessed yet another volatile trading session yesterday as it fell more than 400 pips from the highs of 1.4468 and recovered to close at 1.4230. The hourly and 4-hourly charts are showing little upside while the daily chart is indicating strong selling bias for the currency. The overall bias remains weak with BOE expected to cut benchmark interest rates by another 50 bps on Thursday. Resistance comes at 1.4308 (100 4-hourly EMA), thus shorts around 1.4280 can be initiated for 100 pips. (Gbp/Usd: 1.4360) Yen: The Dollar-Yen pair has been trading within a small range holding below the 21 Daily EMA strongly. Currently trading at 89.70, the hourly and 4-hourly charts indicate a downside for the pair. Resistance holds at 90.00 levels (21 Daily EMA & 38.2% Retracement) whereas downside could be curbed around 87.12 Break-out of the range would determine the direction for the paur. Avoid initiating positions in this pair now. (Usd/Jpy: 89.69) Rupee: The local unit recouped some of its loses on Friday as the local stocks gained some momentum. It closed 10 paisa stronger as compared to its Thursday's close of 49.97/98. Today morning it opened higher at 49 levels and the government is restricting the rupee fall around the important resistance of 49.30. The one-month offshore NDF rate quoted at 49.28/38 levels which shows the outlook for for the local unit remains bearish in the near term. (USD/INR:49.01) Swiss Franc: Usd/Chf pair surged higher to 1.1683 levels while it closed lower near the 21 4-hourly EMA (1.1576). Major charts are indicating an upside thus longs can be considered for intraday 80 pips around the same support level (1.1580). Downside could be curbed at 1.1560 levels (100 hourly EMA). (Usd/Chf:1.1617). Australian Dollar : Aussie fell to the lows of 0.6248 levels however rebounded to close around 0.63 levels. It tested the 0.64 levels in the early trade today on the back of another stimulus package by the Australian Government. The benchmark interest rate was reduced by 100 bps today by the RBA. The hourly charts have corrected in the overbought region while the 4-hourly charts are moving upward. Shorts can be initiated around 0.6435 (100 hourly EMA) for 80 – 90 pips. (Aud/Usd-0.6370) Gold: Gold moved within a wide range of $24 in yesterday's session touching the lows of $901.05. The 4-hourly charts, however, are reaching oversold region with immediate support coming in at $873 (21 Daily EMA). Long positions can be considered around $875 - $880 (cluster support) for intraday $10-$15. (Gold: $907.15) Dollar index: Dollar Index is trading just below the 87 levels with stochastics neutrally poised at 70.65% before reaching the over-bought region. 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.