Forex Technical Update

Daily Forex Technicals | Written by India Forex | May 15 09 06:58 GMT |

Rupee: Rupee as expected took the resistance at 50 yesterday and has appreciated 50 paisa (please refer our chart sent yesterday). The bias for rupee prior the election results of being strong has been met, thus we recommend booking profits and squaring off the Dollar shorts in the market. Let the election results decide the rupee direction for initiating the fresh positions on Monday. (USD/INR : 49.49). Neutral to Short Term Bullish. Euro: Euro gained support from the 200-Day EMA at 1.3525 and has risen 100 pips from there. The outlook continues to remains bullish above 1.34, however with the daily and 4-hourly charts getting overbought correction from 1.3790 resistance could be witnessed. Cautious shorts could be considered at those levels, else buy at deeper corrections. (Eur/Usd:1.3637). Bullish above 1.3400. Pound: Cable's fall was restricted around 1.5058 (as expected yesterday) from where it gained momentum and surged close to 200 pips. The 4-hourly charts is overbought with initial resistance remaining at 1.5350 (previous high). Look for opportunities to short around 1.5350 for 80-100 pips. Alternatively, buying at dips around 1.51 could be considered. We expect cable to remain bullish for a short term.(Gbp/Usd: 1.5226). Short Term Bullish Yen: Usd/Jpy pair has broken the 96.00 support and headed lower to 95.10 levels. Although the charts are getting oversold and some upside could be witnessed, sustained trading below 96.00 levels may bring a test of 93.50 levels. Stay cautious. (Usd/Jpy: 95.91). Australian Dollar: Aussie bounced back from 0.7464 low yesterday and is now trading close to 0.7600 levels. The 4-hourly charts are getting overbought. Crucial resistance remains at 0.78 levels which could be considered as an opportunity to initiate shorts for 80-100 pips. (Aud/Usd: 0.7597) Gold: Gold moved in a small range of $8 yesterday. The daily charts are overbought showing slight correction with $910 as support. Initiate longs within $906-910 levels. Bias of gold remains bullish overall. (Gold- 925.42) Dollar Index: Our overall bias for the dollar remains bearish for DX below 83 levels. Thus selling dollars at every up-tick can be considered for the majors (Refer chart on our website). Neutral to Bearish (DI- 82.56) 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.