FX Technical Analysis

Daily Forex Technicals | Written by Mizuho Corporate Bank | Jul 28 09 06:38 GMT |

EURUSD Comment: Holding well above a large Ichimoku 'cloud' with moving averages decidedly bullish. If the lagging Span manages to hold above the top of the 'triangle' bullish momentum should increase even further for a test of this year's high at 1.4339. Implied volatility should pick up next where traders and investors should note that current consensus opinion is that the US dollar should strengthen over the coming 12 months. Strategy: Buy at 1.4275, adding to 1.4200; stop below 1.4100. Short term target 1.4300/1.4339, a lot more on a sustained break above 1.4375. Direction of Trade: → ↗ Chart Levels: Support Resistance 1.4240 " 1.43 1.42 1.4339* 1.4165 1.4365* 1.4118* 1.443 1.4095 1.453 GBPUSD Comment: Cable is inching fractionally higher and bullish momentum should increase if the Lagging Span manages to hold above the upper edge of the 'triangle' formation. The pound is not overbought and several other currencies look similar. Strategy: Attempt small longs at 1.6550, adding to 1.6450; stop well below 1.6300. First target 1.6600/1.6650 and then this year's high at 1.6745. More later this year. Direction of Trade: →↗ Chart Levels: Support Resistance 1.6490 " 1.656 1.6457 1.6587 1.6382 1.6625 1.63 1.6664 1.6187 1.6745 USDJPY Comment: Stalling against Fibonacci retracement but few clear signs of topping yet. Some stops were triggered on yesterday's blip above last week's high at 95.30. Open interest in the futures market continues to decline and is running at the lowest since 2003. Strategy: Attempt small shorts at 95.15; stop well above 95.40. Add to shorts on a sustained break below 94.40 for 93.25 Direction of Trade: → Chart Levels: Support Resistance 94.59/94.40 " 95.39* 94 95.5 93.85 95.67 93.5 96 93.00* 96.25* EURJPY Comment: Trading at some of the highest levels this year and we shall continue to watch for signs of topping today and all week. Strategy: Possibly attempt tiny shorts at 135.80; stop above 136.25. Add to shorts on a sustained break below 134.00 for 132.00. Direction of Trade: →↘ Chart Levels: Support Resistance 135.00 " 135.88 134.65 136.11 134.25 136.75 133.85 136.9 132.85 137.42 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.