FX Technical Analysis

Daily Forex Technicals | Written by Mizuho Corporate Bank | Jul 07 09 06:28 GMT |

EURUSD Comment: A small 'hammer' candle yesterday ahead of a rising and increasingly large Ichimoku 'cloud' demonstrate the underlying bullish tone. Until we get a weekly close above 1.4200 we shall have to allow for yet more random consolidation within the recent range. Strategy: Attempt longs at 1.3955; stop below 1.3800. Short term target 1.4100, then 1.4200. Direction of Trade: → Chart Levels: Support Resistance 1.3950 " 1.4 1.3927 1.4045 1.3876 1.41 1.3825 1.4178/1.4202* 1.3800* 1.423 GBPUSD Comment: Yesterday's 'hammer' candle whose low was at the middle of the recent trading range underlines the long term bullish trend to this currency pair. Moving averages are still bullish, supported by an increasingly large, upward-sloping Ichimoku 'cloud'. A weekly close clearly above 1.6500 should add to current strong bullish momentum, hopefully with a whole host of currencies pulling in the same direction. Strategy: Attempt small longs at 1.6225; stop below 1.6075. First target 1.6500, then 1.6600. Direction of Trade: → Chart Levels: Support Resistance 1.6216 " 1.63 1.6187 1.635 1.6125 1.6435 1.6095* 1.66 1.5985 1.6745* USDJPY Comment: Pity it didn't close below 95.00 yesterday as this would have seen bearish pressure increase. Expect more consolidation neatly below the lower edge of the Ichimoku 'cloud' and the moving averages today, above trendline support. Hopefully some time this week we will see a re-test of the increasingly important 94.00 area. Strategy: Attempt shorts at 95.35, adding to 96.00; stop well above 96.25. First target 94.66/94.44, then lower still. Direction of Trade: → Chart Levels: Support Resistance 95.11 " 95.46 95 95.8 94.88 96.25* 94.66 96.6 94.44 94.00 97.25* EURJPY Comment: Testing trendline support and a thin Ichimoku 'cloud', below moving averages which suggest a short position. We expect a re-test of the 132.00 area where a weekly close below here would add considerably to downside pressure, potentially setting off a very sharp move lower over the next two weeks. Strategy: Sell at 133.05, adding to 134.00; stop above 135.55. Short term target 132.00/131.80, then 130.00. Direction of Trade: → Chart Levels: Support Resistance 133.00 " 133.46 132.5 134.05 132 135 131.73 135.4 131.41* 136 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.