Forex Technical Update

Daily Forex Technicals | Written by India Forex | Oct 14 09 07:43 GMT |

Rupee : Rupee is maintaining strength after break of 47.80 trendline support. Upmove/Retracements can be seen till 47.40 levels maximum. Selling at every rally in dollar is recommended till 47.40 levels. Until we see a break of 48.00 levels again on a closing basis the bias of rupee is quite strong. Medium term target 45.85. levels. (USD/INR 46.10) Clearly Bullish Euro : EURO failed to break the support of 1.4680 levels and regained fresh momentum from the 21 day EMA support. 1.48 levels remains the key support level for today we would watch any reaction around that area before being bullish again. Consistent movement below that area could be a potential threat to the bullish outlook and challenging near 1.45 levels and its rejection to maintain above 1.4850 could be an important even in longer term which could potentially trigger a significant bearish reversal. Staying above 1.4860 levels would move the euro to 1.4930 and 1.50 levels.(EUR/USD-1.4880) Slight Bullish Sterling :GBPUSD had taken a significant support at 1.57 levels yesterday and made a reversal pattern in daily charts. The bias is slightly bullish in short term and could reach till 1.6030 levels. Look at cautious shorts over there with tight stops. While broad Dollar weakness continues, violation of the major trendline resistance around 1.6100 could be a potential starting point for a bullish reversal scenario. Immediate support at 1.5880/50 area. Break below that area should keep the overall bearish scenario intact re-testing 1.5707.(GBP/USD 1.5963) Slight Bullish. Yen : Yen made another indecisive movement yesterday, formed a Doji on daily chart. On the h4 chart below we can see that the pair still able to stay above 89.60/30 area. The short term bearish case for yen remains intact. We also have a 'flag' formation, which is technically a bullish formation especially if we have a breakout above the 'flag' targeting 91.50 area. However, a valid break below 89.60/30 area should be seen as potential threat to the bearish correction scenario. (USD/JPY 89.04) Slight bearish. Aud : AUD accelarated with renewed momentum yesterday . Currently trading at 0.9130 levels , the pair looks highly overbought and poised for the meltdown triggering some downside retracement towards 0.9000 area but short position is not recommended at this phase. Move near 0.9180 is possible. (AUD/USD -0.9123) Bullish Gold : Gold has yet again made a record high of $1069 levels this morning breaking the earlier high. This strength in the yellow metal seem to sustain in the near term.(GOLD $1068.35)Bullish Dollar Index :The view on Dollar Index (basket against 6 currencies with EUR accounting for 57% of the basket) stays neutral. The next major support close to 75.50 has reached , breaking and maintaing below that would again make fresh lows to 74 dollars. Staying above 75.50 looks most likely lead to a decent correction.(Dollar Index - 75.65).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.