Forex Technical Update

Daily Forex Technicals | Written by India Forex | Jun 01 09 07:35 GMT |

Rupee: Rupee rides on the waves of positive sentiments as it appreciated to breach the 47-mark in the early trade today, however, is holding above the mentioned support of 46.80. Below 46.80 rupee is likely to test our medium term target of 46.00. (USD/INR : 47.02). Medium Term Bullish. Euro: Euro reached as high as 1.4168 (near the 50% retracement resistance) in the last trading session. The 4-hourly and daily charts continue to indicate further upside. Slight correction could be witnessed, however, sustained trading above 1.41 (21 Hourly EMA) and decisive break of 1.4180 resistance can push Euro higher to 1.4363 levels. ECB Policy decision is awaited on June 4th. Until then buying at dips is suggested. (Eur/Usd:1.4135).. Bullish above 1.3750. Pound: Cable surged close to 300 pips in the last trading session to 1.62 levels. All the major charts have become flat in the overbought region indicating further upside. Currently, Cable is pressing the 55-weekly EMA at 1.6230. Avoid initiating short positions as Cable is still in an uptrend and decisive break of 1.6230 can take cable to test 1.6670. Initiate longs at dips around 1.5950 levels for 150 – 200 pips. (Gbp/Usd: 1.6209). Short term Bullish Yen: Dollar-Yen pair fell 190 pips on Friday to test 95-levels again. The pair is bearish till it is holds below 98.25 which is the falling trendline. The hourly and 4-hourly charts are due for some correction. Retracements upto 96.50 cluster EMA resistance could be considered as a good selling opportunity. On the upside, decisive break of 98.25 will change the outlook to bullish. (USD/JPY 95.24).Bearish Australian Dollar: Aussie continues to rally after breaking past the 0.7935 resistance and moving higher to trade above 0.80 – mark. The charts continue to show further upside as they have flattened in the overbought region. Longs can be entered around 0.7995 (21 hourly EMA) and further around 0.78 levels (cluster EMA support in 4-hourly and weekly) as the outlook remains bullish and a test of 0.8375 is probable. (Aud/Usd: 0.8047).Bullish Gold: Gold as expected continues to strengthen. After rising almost $22 from $958 on Friday, it is currently trading at $984. The charts continue to indicate further upside and it is likely to test $1000 (double top) soon. Accumulate longs at dips around $960 for $18 - $20. (Gold- 984.80). Bullish Dollar Index: DX fell to 79.20 levels as major sell-off in Dollar was witnessed on Friday. The charts continue to indicate selling bias as the charts remain flat in the oversold region. Overall Bearish. (DI- 79.20) 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.