Forex Technical Update

Daily Forex Technicals | Written by India Forex | Oct 07 09 07:36 GMT |

Rupee : Rupee was expected to hold strong after breaking the crucial support of 47.80 despite the dollar not making fresh lows internationally. Stocks are not holding so strong despite which we are seeing strength in dollar rupee to hold. Until we see a break of 48.00 levels again on a closing basis the bias of rupee is quite strong. Today is the 4th day in a row when the market has broken 47.80 levels. Medium term target 46.00 levels. 46.50 would remain an important support for the week. Bias looks strong for rupee. Sell at every rally. (USD/INR 46.70) Bullish Euro : EURO had a moderate bullish momentum yesterday . The pair is now trading above the trendline resistance indicating bullish pressure still able to maintain it's momentum. Technically in nearest term the bias is bullish testing 1.4720 – 1.4850 area. However please note that in longer term perspective, the rejection to move above 1.4850 on September 23 should keep the medium term bias remains neutral. Buying close to 1.46 is recommended. (EUR/USD-1.4696) Bullish Sterling :GBP made another indecisive movement yesterday. On h4 chart the pound is still trading below the trendline resistance We still prefer a bearish scenario but we need a valid break below 1.5905 before re-testing 1.5805. Immediate resistance at 1.6022 . Break above that area should trigger further bullish momentum re-testing 1.6113 but we should not initiate buys. Look at selling opportunities between 1.61-1.6200 levels for medium term target 1.5700.(GBP/USD 1.5871) Bearish Yen : Yen continues to stay in range today and consolidation from 88.23 might extend further. Another rise to 90.42 resistance and above cannot be ruled out. But after all, upside is expected to be limited well below 92.52 resistance and bring a fall again . Below 88.59 minor support will flip intraday bias back to the downside. Break of 88.23 will target 87.12 low. (USD/JPY 88.77) Bullish. Aud : Aud maintains bullish bias and break above 0.8787. Immediate support at 0.8650. Break below that area should trigger further bearish momentum re-testing 0.8567 (Friday's low). Technically buying on dips close to important supports remains the best strategy in the current market scenario.Only a continuous move below 0.8600 would break the trendline and stand bearish for the pair. (AUD/USD -0.8895) Bullish Gold : Gold breached the peak of $1033 levels yesterday making a new record high of $1043 on the back of USD weakness. This has confirmed the Long-term uptrend in the yellow metal. Accumulating at every dip is recommended. Bullish (Gold - 1042.62) Dollar Index : The view on Dollar Index (basket against 6 currencies with EUR accounting for 57% of the basket) stays neutral. Further rise will be in favor as long as 76.50 minor support holds and above 77.47 will pave the way to key resistance level at 78.93 next. However, a break below 76.50 will put 75.83 back into focus.It could bottom close to 75.50 levels. (Dollar Index - 76.35).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.