FX Technical Analysis

Daily Forex Technicals | Written by Mizuho Corporate Bank | Feb 27 09 07:20 GMT |

EURUSD Comment: Tedious and difficult with shrinking intra-day moves as the Euro thrashes around trying to break out of the downward-sloping 'wedge' formation, trapped by the moving averages. The lows line up almost too neatly so maybe we have to trigger some stops which might lie below here. A daily close above the 26-day moving average at 1.2920 might turn momentum decidedly bullish. Strategy: Attempt small longs at 1.2725; stop well below 1.2600. First target 1.2850 then 1.3000 Direction of Trade: → Chart Levels: Support Resistance 1.2687 " 1.2811 1.2662* 1.2855 1.26 1.29 1.2557 1.2920* 1.2500** 1.3000* GBPUSD Comment: Stuck between a rock and a hard place. Surely this can't continue for much longer. Strategy: Attempt tiny longs at 1.4265; stop below 1.4050. Short term target 1.4400 then 1.4600 Direction of Trade: → Chart Levels: Support Resistance 1.4174 " 1.4295 1.4161/1.4150* 1.4385 1.41 1.44 1.4050* 1.4600* 1.393 1.4663* USDJPY Comment: Up six Yen in just a week, the biggest rally since November and one of the biggest in years. We have retraced 50% of the drop between August and December last year and the rally is 1.6 times the size of the rally from December to early January. The US dollar is terribly overbought so we feel it's time to take a breather. Strategy: Attempt tiny shorts at 98.00; stop above 99.00. Add to shorts on a sustained break below 97.25 for 96.00 and possibly 95.00. Direction of Trade: → Chart Levels: Support Resistance 97.32* " 98 96.98 98.61/98.72* 96.35 99.00* 96.00* 99.25 95.25 99.5 EURJPY Comment: Not today but some time next month we still favour a squeeze up to trendline resistance at 128.50 and probably December's high at 131.02. Strong bullish momentum is maintained if we hold above the 122.00 area. Strategy: Attempt longs at 124.30; stop below 122.00. First target 125.00, then 126.00 Direction of Trade: → Chart Levels: Support Resistance 124.00 " 125.16 123.72 126.09/126.25* 123.10* 127.3 122 127.75 121.5 128.50* 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.