FX Technical Analysis

Daily Forex Technicals | Written by Mizuho Corporate Bank | Apr 27 09 06:45 GMT |

EURUSD Comment: Closing above the thinnest point of the Ichimoku 'cloud' and the 9-day moving average (struggling with the 26-day one), with a 'bullish engulfing' candle on the weekly candle. Momentum has yet to turn bullish but should do when we break above the top of the large 'flag'. Strategy: Attempt longs at 1.3145; stop below 1.3000. Add to longs on a sustained break above 1.3305 for 1.3400 short term and 1.3600 further out. Direction of Trade: →↗ Chart Levels: Support Resistance 1.3135 " 1.3255 1.3113 1.3302* 1.309 1.3395* 1.3000* 1.3515 1.295 1.3585 GBPUSD Comment: Consolidating above the top of the Ichimoku 'cloud', closing above the 26-day moving average, in what can be seen as a 'bullish engulfing' candle. Bullish momentum might increase if we hold above 1.4600 today though really a weekly close above 1.5000 is essential for a decent rally to really get going. Strategy: Attempt longs at 1.4555; stop below 1.4380. Short term target 1.4700, eventually 1.5000. Direction of Trade: →↗ Chart Levels: Support Resistance 1.4550 " 1.4675 1.45 1.4708 1.444 1.478 1.4397* 1.4855 1.435 1.496 USDJPY Comment: Re-testing Friday's low, the 61% Fibonacci retracement and the 9 and 26-day moving averages have crossed to a sell. We have adjusted our view and now see April's high at 101.45 as an interim top so that prices are likely to hold below here for another couple of months or so. The next step should be a bout of generalised US dollar weakness so that dollar/Yen drops towards 93.50. Strategy: Attempt shorts at 96.65, adding to 98.00; stop well above 98.50. Add to shorts on a break below 96.50 for 95.75 short term, probably 93.50 further out Direction of Trade: → Chart Levels: Support Resistance 96.50* " 97 96.35 97.25 95.95 97.44 95.65* 98.15 95.35 98.50* EURJPY Comment: Consolidating at current levels and hopefully the thickening Ichimoku 'cloud' will keep on nudging it up. Momentum is nowhere near bullish and the long term outlook is for broadly sideways work this year. Strategy: Attempt small longs at 127.15; stop well below 126.00. Add to long above 129.30 for 130.00 short term and maybe 134.00 further out. Direction of Trade: →↗ Chart Levels: Support Resistance 127.00 " 128.75 126.8 129.3 126.10* 130.3 125.45 131.85 123.85 134.33* 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.