Daily Technical Outlook

Daily Forex Technicals | Written by Innerfx | Oct 06 09 05:53 GMT |

EURUSD The euro recovered on yesterday and continued to climb higher during today's Asian trading session. Upside remains favored and a daily close above 1.4700 would confirm the end of the corrective cycle from 1.4845 to 1.4480. Intra-day sentiment is also positive and won't change as long as 1.4650/70 will provide support on pullbacks. Since there aren't any solid resistance levels until the ytd high at 1.4845, extended gains should be easily achieved if the support into the 1.4670/00 region will be confirmed. Current quote is 1.4720 @05:30 GMT Support: 1.4670, 1.4600 and 1.4500/20 Resistance: 1.4720/50, 1.4800 and 1.4820/45 GBPUSD Both intra-day and short-term charts show signs of indecision as cable fails to follow euro's performance against the dollar nowadays. While the pound trades on a fragile ground and shows clear signs of weakness across the board, upside seem slightly favored and the pound is getting away from the support zone around 1.5800. However, it is far from trading into a safe zone so look for the same indecisive behavior as long as the pair holds below the 1.62-1.63 region. Current quote is 1.5995 @05:30 GMT Support: 1.5900, 1.5950 and 1.5800 Resistance: 1.6000, 1.6050 and 1.6130 USDJPY Downside is under heavy pressure as the dollar currently trades only 100 points above last week's low. Both short-term and intra-day studies are negative and the dollar doesn't show any signs of recovery. On potential dollar gains, look for resistance into the 89.50/65 region then above, at 90. A minor support is formed by an upward trend line around 88.75, as seen on the chart attached below. Current quote is 88.95 @05:30 GMT Support: 88.75, 88.00/25 and 87.20/50 Resistance: 89.50/60, 90 and 90.50 Innerfx Legal disclaimer and risk disclosure InnerFX and/or its author(s) shall not be responsible for any loss arising from any investment or trading decision based on any recommendation, forecast, strategy or other information herein contained. The contents of this article should not be construed as an express or implied promise, guarantee or implication by InnerFX and/or its author(s) that readers and subscribers will profit from the strategies herein or that losses in connection therewith can or will be limited. Trades in accordance with the recommendations / strategy in an analysis, especially leveraged investments such as Foreign Exchange trading and investment in derivatives, can be very speculative and may result in losses as well as profits, in particular if the conditions mentioned in the analysis do not occur as anticipated. Trading in the Currency Exchange market is a challenging opportunity where above average returns are available to educated and experienced investors who are willing to take above average risk. Past performance does not guarantee similar performance in the future. Check http://www.innerfx.com/disclaimer for full disclaimer. You may not post this (or part of this) article to forums, newsgroups, mailing lists, electronic bulletin boards, websites, or other services, without the prior written consent of InnerFX.