FX Technical Analysis

Daily Forex Technicals | Written by Mizuho Corporate Bank | Mar 12 09 07:19 GMT |

EURUSD Comment: Very cautiously probing the top of the downward-sloping 'wedge' formation. Yesterday's close above the trendline and 26-day moving average might add some much-needed bullish momentum, where a weekly close above 1.2965 should help things move up too. Strategy: Buy at 1.2775; stop below 1.2450. Add to longs on a sustained break above 1.2900 for 1.3000 and then 1.3100. Direction of Trade: →↗ Chart Levels: Support Resistance 1.2774 " 1.2872 1.2744 1.29 1.266 1.2965 1.2600* 1.3000* 1.2457* 1.3100* GBPUSD Comment: Redrawing the downward-sloping 'wedge' formation so that prices remain within this extraordinarily long pattern. Be very careful. Strategy: Possibly attempt tiny longs at 1.3835; stop below 1.3500. Short term target 1.4000, eventually 1.4600. Direction of Trade: → Chart Levels: Support Resistance 1.3823 " 1.39 1.374 1.3925 1.369 1.403 1.3655* 1.41 1.3500* 1.4234 USDJPY Comment: Dipping to its lowest level in twelve days in what might just be a tiny 'head-and-shoulders' pattern. This should hopefully form an interim high, setting up forlots more consolidation below the psychological 100.00. We remind that our view over the whole of this year we currently favour very broad sideways moves for the Yen and Yen crosses and the difficulty will be finding the many interim highs and lows. Later this week or this month we shall continue to favour a drop back down towards the 93.00 area. Strategy: Sell at 96.45, adding to 97.00; stop well above 98.25. Add to shorts on a sustained break below 95.85 for 95.00 short term and probably 93.00. Direction of Trade: →↘ Chart Levels: Support Resistance 95.95 " 97 95.5 97.18 95.25 97.46 94.9 97.8 94.25 98.25 EURJPY Comment: Moves to new recent highs in Yen crosses have probably been postponed to next week at the very earliest. Therefore allow for another week or three of consolidation around current levels. Strategy: Attempt small longs at 123.15; stop below 121.50. First target 125.00, then 126.00. Direction of Trade: → Chart Levels: Support Resistance 123.10 " 124.75 122.4 125.07 122 126.07/126.26** 121.73* 127 120.75 128.55* 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.