FX Technical Analysis

Daily Forex Technicals | Written by Mizuho Corporate Bank | Jun 26 09 06:18 GMT |

EURUSD Comment: Tricky as prices remain within the 1.3800 to 1.4100 range that has held most of the time since May. We continue to feel we are preparing to break out of recent ranges, the best examples currently AUD and NZD. Strategy: Attempt longs at 1.4030; stop below 1.3800. Short term target 1.4100, then 1.4200. Direction of Trade: →↗ Chart Levels: Support Resistance 1.3982 " 1.4062 1.3888 1.4109 1.385 1.4139 1.3826 1.4178 1.38 1.423 GBPUSD Comment: Pushing towards the apex of the 'triangle/pennant' and moving averages suggest a long position. The pound is not in the slightest bit overbought and bullish momentum is among the strongest in years. A weekly close above 1.6600 is needed to take bullish momentum back up to the very strong levels of early June. Strategy: Attempt small longs at 1.6390/1.6300; stop below 1.6080. First target 1.6500, then 1.6600. Direction of Trade: →↗ Chart Levels: Support Resistance 1.6368 " 1.6474 1.6231 1.6507 1.6209 1.6562 1.6187 1.6622 1.612 1.6664* USDJPY Comment: Retreating smartly from the lower edge of the Ichimoku 'cloud' to form a 'spike high' candle against the moving averages. This has added to bearish momentum and the US dollar is not oversold. Probably not today, but maybe next week, we favour a test of the pivotal 94.00 area. Strategy: Sell at 95.85/96.00; stop well above 96.65. First target 95.50, then 95.00 and more. Direction of Trade: →↘ Chart Levels: Support Resistance 95.62 " 96.07 95.5 96.58 95 96.80* 94.88 97.27* 94.44 97.65 EURJPY Comment: Holding above trendline support, rather better than expected though well below this year's high. Expect more consolidation today. Strategy: Possibly attempt small shorts at 134.60; stop above 135.50. Short term target 133.00, then 132.00. Direction of Trade: → Chart Levels: Support Resistance 134.10 " 134.82 133 135 132.35 135.38/135.50* 131.8 136 131.41* 137.35 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.