Forex Technical Update

Daily Forex Technicals | Written by India Forex | May 26 09 07:02 GMT |

Rupee: Rupee continues to weaken due to month-end dollar demand by importers taking Usd-Inr to 47.60 levels. The overall outlook for rupee still remains bullish, thus exporters should look for opportunities to cover their exposures around 47.90 - 48.20 levels. (USD/INR : 47.55). Bullish. Euro: Euro is trading slighly below the 1.40-level after touching the highs of 1.4050 on Friday. The daily and weekly charts flat in the overbought region indicating further upside. The 4-hourly charts are due for some correction and can take Euro to 1.3910 levels (21 4-hourly EMA) and then to 1.3800 (100 weekly EMA). Such dips / retracements should be considered as a buying opportunity in Euro. On the upside sustained trading above 1.40 can push Euro higher to 1.4170 (50% of the fall from 1.6038 to 1.2329). Avoid shorts in Euro. (Eur/Usd:1.3970). Short Term Bullish. Pound: Cable traded sideways in 100 pips yesterday with a low of 1.5834. The lacklustre was due to US and UK market holiday. The daily & 4-Hourly charts are highly overbought with resistance around 1.6035 (38.2% of the fall from 2.0158 to 1.3502) and then at 1.6228 (55 Weekly EMA). Although correction is due, yet avoid initiating short positions as Cable is still in an uptrend. Initiate longs around 1.5770-1.58 levels for 150-200 pips. Stay cautious on shorts before 1.62. (Gbp/Usd: 1.5885). Short term Bullish Yen: The Usd/Jpy pair surged to 95.20 levels before closing lower at 94.82. The 4-hourly & hourly charts are yet to get completely oversold. The pair is taking resistance around the 21 4-houlry EMA beyond which the next resistance comes around 95.20 where shorts in the pair could be considered. Overall outlook remains bearish and a test of 92.50 is probable. (Usd/Jpy: 94.69). Bearish Australian Dollar: Aussie continues trade below the 0.7800 weekly resistance. Major charts are overbought and indicating a selling bias. A correction upto 0.7550 (21 Daily EMA) could be seen where longs can be entered. On the upside only a decisive break above 0.7800 resistance can push Aussie towards 0.7935 (50% Retarcement of the fall). Shorts around 0.7910 for 200 pips correction could also be targetted. (Aud/Usd: 0.7783).Bullish Gold: Gold traded sideways in $7 yesterday with the daily charts overbought. Contrarily the hourly charts are highly oversold with support around $950 (21 4-hourly EMA) and then at $937 (cluster support). We maintain our view for going long in Gold at corrections around $937 - 940 as the overall bias for gold is bullish. Bullish (Gold- 954.62) Dollar Index: DX is pressing against our support target of 80.20 (as mentioned in our charts) breaking of which can bring further bearishness to 79.66. The stochastic continues to be flat in the oversold region. A small rebound could be expected from 79.66 support. (DI- 80.20) ) Bearish 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.