FX Technical Analysis

Daily Forex Technicals | Written by Mizuho Corporate Bank | May 15 09 06:26 GMT |

EURUSD Comment: Consolidating in a neat little range just under this year's highs (1.3801 on the 8th January and 1.3739 on the 19th March). Moving averages are bullish and the 9-day one pushed the Euro higher yesterday so that we formed a small 'spike low' on the daily chart. A weekly close above 1.3800 would add significant bullish momentum. Strategy: Buy at 1.3630, adding to 1.3555; stop below 1.3400. Add to longs on a sustained break above 1.3750 for 1.3800 and then 1.4000. Direction of Trade: →↗ Chart Levels: Support Resistance 1.3618 " 1.367 1.3525 1.37 1.3465 1.3722 1.3400* 1.38 1.33 1.3965 GBPUSD Comment: Little to add as we consolidate fairly neatly above the 9-day moving average which has risen to 1.5148 today. This will hopefully help to push it up towards this year's highs. Another round of buy stops is likely above 1.5500. Strategy: Buy at 1.5225, adding to 1.5150; stop well below 1.5000. Add to longs on a sustained break above 1.5375 for 1.5500 short term and then 1.5725/1.5800. Direction of Trade: →↗ Chart Levels: Support Resistance 1.5205 " 1.5249 1.5148 1.528 1.5059 1.5354/1.5375* 1.4940* 1.5535 1.4875 1.5725 USDJPY Comment: Bouncing from the bottom of a large Ichimoku 'cloud', and so far today capped by the 'neckline' of the irregular 'head-and-shoulders' top. Probably not today but next week we favour another drop and a re-test of the 50% Fibonacci retracement at 94.25 and the March low at 93.55. Strategy: Attempt shorts at 95.90, adding to 96.45; stop above 98.00. Add to shorts below 95.00 for 94.25, possibly 93.55. Direction of Trade: → Chart Levels: Support Resistance 95.79 " 96 95.5 96.2 95.10/95.00* 96.45 94.15 96.7 93.55* 97.5 EURJPY Comment: Bouncing from Fibonacci retracement support but apparently capped at the top of a very large Ichimoku 'cloud'. Chikou Span has dropped below the candles which may help to turn momentum bearish. Next week we favour a drop to the 126.00 area, maybe more. Strategy: Sell at 130.50/131.00; stop above 132.55. Add to shorts on a sustained break below 128.80 for 126.40. Direction of Trade: → Chart Levels: Support Resistance 130.40 " 131.15 129.85 132 128.87* 132.4 127.25 133 126.40/126.10* 134.40/134.85* 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.