Forex Technical Update

Daily Forex Technicals | Written by India Forex | Oct 01 09 07:35 GMT |

Rupee : Rupee is holding little strong despite the dollar not making fresh lows internationally.Stocks are also holding strong too. We are looking at the important support of weekly trendline close to 47.80 levels.We expect rupee to be in the range of 47.80 to 48.30 in short term. It has major weekly trend support at 47.80-90 till which further weakness in rupee till 48.30 can be seen. ONCE we see the levels of 47.80 breaking the bias of rupee may change to bullishness.(USD/INR 47.84) Rangebound Euro : EUR/USD is having a strong trendline and a 55 EMA support in weekly chart near 1.4450 levels. Only and Only a decisive break of this trendline support level indicates a medium term bearishness in EUR/USD. Initiate Buying at this level keeping the stop loss below 1.4350 levels on Daily closing basis. (EUR/USD 1.4560).Bullish. Sterling : Sterling took a rebound to 1.6127 yesterday and subsequently fell to 1.59 levels. The retreat suggests that the correction from 1.5770 has possibly ended and downside bias is seen for fall towards yesterday's low at 1.5824 , however, we need a break of 1.58 to confirm and bring resumption of recent decline from 1.7044 top for retest of 1.5770 later this week. In view of this, we are looking to sell cable again on recovery. Only above 1.6127-34 resistance would abort and signal stronger correction of recent fall is taking place.(GBP/USD 1.5954) Bearish. Yen : The USDJPY is holding near 90 levels and only a hold above 90.20 would make the view consolidative otherwise bias for the yen still remains strong. Initial support at 88.22 (yesterday's low). Break below that area should continue the bearish scenario towards 87.10 area.(USD/JPY 89.99) Bullish Aud : Aud maintains bullish bias. Technically buying on dips close to important supports remains the best strategy in the current market scenario.Only a continuous move below 0.8400 would break the trendline and stand bearish for the pair. (AUD/USD - 0.8789) Bullish Gold : Gold dipped yesterday till $994 levels from where it rebounded strongly till $1009 levels. We recommend to buy on dips near the support of $985 levels for the target of $1032 levels.(GOLD : 1004.50) Bullish Dollar Index : The Dollar Index (basket against 6 currencies with EUR accounting for 57% of the basket) pull back from 77.33 argues that an intraday top is in place and some consolidations might be seen. Nevertheless, we're still favoring the case that the index has bottomed out at 75.83 already, after drawing support from 75.89. Above 77.33 will bring rally resumption to 78.93. Break there will confirm there whole rise five wave decline from 89.62 has completed and will bring rally to challenge 81 level nextneeds to break the levels of 78.70 to maintain strength again. It could bottom close to 75.50 levels. (Dollar Index - 77.03).Neutral India Forex http://www.indiaforex.in DISCLAIMER These views/ forecasts/ suggestions, though proferred with the best of intentions, are based on our reading of the market at the time of writing. They are subject to change without notice.Though the information sources are believed to be reliable, the information is not guaranteed for accuracy. Those acting in the market on the basis of these are themselves responsible for any profits or losses that might occur, without recourse to us. World financial markets, and especially the Foreign Exchange markets, are inherently risky and it is assumed that those who trade these markets are fully aware of the risk of real loss involved.