FX Technical Analysis

Daily Forex Technicals | Written by Mizuho Corporate Bank | Jul 03 09 06:37 GMT |

EURUSD Comment: Messy and we remind that a weekly close above 1.4200 is the absolute minimum needed to confirm an important upside break. Until then we shall have to allow for yet more random consolidation within the recent range. Strategy: Attempt longs at 1.4000; stop below 1.3900. Short term target 1.4100, then 1.4200 Direction of Trade: → Chart Levels: Support Resistance 1.3988 " 1.4015 1.3927 1.41 1.3875 1.4178/1.4202* 1.3825 1.423 1.3800* 1.4269 GBPUSD Comment: Still stuck between a rock and a hard place, trying to break higher but getting zero help from other currencies. A weekly close clearly above 1.6500 should add to current strong bullish momentum. Strategy: Attempt small longs at 1.6415; stop below 1.6175. First target 1.6550/1.6600. Direction of Trade: → Chart Levels: Support Resistance 1.6323 " 1.65 1.6275 1.6605 1.6209 1.6664 1.6187* 1.6745* 1.6125 1.68 USDJPY Comment: Closing below the lower edge of the Ichimoku 'cloud' and the moving averages, adding a tiny amount of bearish pressure. Hopefully we will see a test of the increasingly important 94.00 area some time in the next two weeks. Strategy: Attempt small shorts at 96.00, adding to 97.00; stop above 97.25. First target 95.50 then 95.00. Direction of Trade: → Chart Levels: Support Resistance 95.70 " 96.2 95.5 96.55 95.3 96.89 95 97.00* 94.44 97.25 EURJPY Comment: Looking more top-heavy after yesterday's decent 'bearish engulfing' candle here and on a number of other Yen crosses. Obviously there is still the moving averages, trendline and 'cloud' to tackle, but a weekly close below 132.00 would add considerably to downside pressure, potentially setting off a very sharp move lower over the next two weeks. Strategy: Attempt shorts at 134.65, adding to 135.35; stop above 137.00. Short term target 133.00, then 132.00. Direction of Trade: → Chart Levels: Support Resistance 134.15 " 135 133.58 135.35 132.85 136 132.35 136.74/136.90* 131.41* 137.7 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.