FX Technical Analysis

Daily Forex Technicals | Written by Mizuho Corporate Bank | Jul 31 09 06:41 GMT |

EURUSD Comment: Terribly slow work but trying to base ahead of the top of the Ichimoku 'cloud'. Moving averages are still bullish and the combination will hopefully help form an interim low which will eventually push the Euro to new highs for this year. Strategy: Attempt longs at 1.4125. adding to 1.4075; stop well below 1.4000. Short term target 1.4200, then 1.4300. Direction of Trade: → ↗ Chart Levels: Support Resistance 1.4064 " 1.4137 1.4 1.4165 1.395 1.42 1.39 1.4305 1.383 1.4339* 1.4365* GBPUSD Comment: A weekly close clearly above 1.6500 should add some much-needed bullish momentum. Hopefully the large, rising Ichimoku 'cloud' will lead to a decisive break above the upper edge of the 'triangle' consolidation pattern, where the measured target is 1.7100 then 1.7500. Strategy: Attempt longs at 1.6565 but only if prepared to add to 1.6400; stop below 1.6300. First target 1.6600 and then this year's high at 1.6745 Direction of Trade: →↗ Chart Levels: Support Resistance 1.6488 " 1.6587 1.6382 1.66 1.6338 1.6625 1.6266 1.6664 1.6187 1.6745* USDJPY Comment: Very messy as prices break above and close over the 50% Fibonacci resistance. Moving averages have just turned bullish yet we remain below the Ichimoku 'cloud'. Stand aside if possible. Strategy: Possibly attempt tiny shorts at 95.30; stop above 96.25. Short term target 94.15 Direction of Trade: → Chart Levels: Support Resistance 95.25 " 95.62 95 95.89* 94.85 96 94.4 96.25* 94.00* 96.55 EURJPY Comment: Hovering just above the Ichimoku 'cloud' and, in what is a rather messy Technical picture, we expect topping activity today against the 135.00 area. Strategy: Possibly attempt small shorts at 134.50; stop well above 135.25. Add to shorts on a sustained break below 133.80 for 132.00/131.85 and more longer term Direction of Trade: → Chart Levels: Support Resistance 134.32 " 134.84 133.85 134.90* 133.23 135.17 132.8 135.65 131.85 136.11 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.