FX Technical Analysis

Daily Forex Technicals | Written by Mizuho Corporate Bank | Jun 30 09 06:37 GMT |

EURUSD Comment: Rallying slowly from retracement support and looking set to move a little higher again today. Only a weekly close above 1.4200 will really get things going and another big round of short-covering. Hopefully a whole host of other currencies will join in with this move adding momentum. Strategy: Attempt longs at 1.4100, adding to 1.4000; stop below 1.3800. Short term target 1.4135, then 1.4300/1.4339. Direction of Trade: →↗ Chart Levels: Support Resistance 1.4071 " 1.4132/1.4139 1.3982 1.4178 1.39 1.42 1.3872 1.423 1.3800* 1.4339** GBPUSD Comment: Breaking higher, as expected, and should squeeze to the next area of resistance around 1.7000. 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 1.6700, adding to 1.6600; stop below 1.6400. First target 1.6800, then 1.7000. Direction of Trade: →↗ Chart Levels: Support Resistance 1.6547 " 1.6715 1.645 1.68 1.625 1.6835 1.6187* 1.69 1.612 1.695 USDJPY Comment: Dipping below the lower edge of the relatively large Ichimoku 'cloud' and above the 'neckline' and moving averages suggest a short position. Maybe this week, certainly some time in July, we favour a test of the pivotal 94.00 area (and an eventual break below here). Strategy: Sell at 95.85/96.00; stop well above 96.65. First target 95.00/94.88 then 94.00 Direction of Trade: →↘ Chart Levels: Support Resistance 95.66 " 95.59 95.16/95.00* 96.05 94.88 96.58* 94.28 97.27* 94.00* 97.65 EURJPY Comment: Squeezing suddenly to a higher price not seen in days, yet forming a potential 'spike high'. This should probably lead to a drift slowly lower over the rest of this week. Strategy: Possibly attempt shorts at 135.00; stop above 136.00. Short term target 133.00, then 132.00 Direction of Trade: → Chart Levels: Support Resistance 133.42 " 135.2 133 135.95* 132.35 137 131.8 137.35 131.41* 138.35 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.