FX Technical Analysis

Daily Forex Technicals | Written by Mizuho Corporate Bank | May 01 09 06:40 GMT |

EURUSD Comment: Trapped at the 26-day moving average, between the top of the 'cloud' and the top of the 'flag'. Hopefully we will get a weekly close above 1.3400 to add to upside pressure. Note similar patterns can be seen in a series of major currencies. Strategy: Buy at 1.3365, adding to 1.3200; stop well below 1.3090. Add to longs on a sustained break above 1.3350 for 1.3400 short term and 1.3600 further out Direction of Trade: →↗ Chart Levels: Support Resistance 1.3219 " 1.3275 1.319 1.33 1.312 1.3342 1.3090* 1.3385/1.3400* 1.2964 1.352 GBPUSD Comment: Holding above the 9 and 26-day moving averages but struggling ahead of the psychological 1.5000 area. We remind that only a weekly close above 1.5000 will give Cable a fighting chance for a decent rally. Strategy: Buy at 1.4780; stop well below 1.4500. Short term target 1.4945, eventually 1.5050 Direction of Trade: →↗ Chart Levels: Support Resistance 1.4748 " 1.4822 1.462 1.495 1.458 1.496 1.4500* 1.504 1.444 1.5069* USDJPY Comment: Bouncing beyond what we had allowed for but appears to be stalling against the 99.00 area as it did in February and March. Moving averages suggest a short so conflicting messages and we may end up trading between 96.00 and 99.00 for longer than we had originally thought. Strategy: Attempt shorts at 98.80; stop above 99.85. Short term target 97.15. Direction of Trade: → Chart Levels: Support Resistance 98.52 " 99.17 97.9 99.69* 97.15 99.77 96.00* 100 95.63* 100.74 EURJPY Comment: Mixed Technical picture and likely to continue difficult with random moves within the big band established since October last year. Allow for more random moves roughly between 126.00 and 133.00 for another week or two. Strategy: Possibly attempt tiny longs at 131.25; stop/reverse below 130.00 for 128.00. Cover longs at 132.55/133.00 and watch for signs of topping. Direction of Trade: → Chart Levels: Support Resistance 130.30 " 131.52 129.35 132.03 128.9 132.55 126.65 134 126 134.33 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.