FX Technical Analysis

Daily Forex Technicals | Written by Mizuho Corporate Bank | Nov 12 09 07:37 GMT |

EURUSD Comment: Consolidating neatly just under this year's high at 1.5064 and short term indicators are neutral. Though the Euro is not overbought we shall continue to allow for consolidation around 1.5000 for another week or two. Strategy: Attempt small longs at 1.4990; stop below 1.4900. Short term target this year's high at 1.5064, then more medium term. Direction of Trade: → Chart Levels: Support Resistance 1.4978 " 1.5021 1.4938 1.5049 1.49 1.5064** 1.485 1.5085 1.4822/1.4811* 1.5115 GBPUSD Comment: Sterling sold across the board as the Bank of England governor again suggests a weak pound will help economic recovery. Nevertheless Cable is holding above immediate trendline support and the 9-day moving average. Expect it to try and hold above here today and move back toward 1.6750 again. Strategy: Attempt small longs at 1.6575; stop below 1.6500. First target 1.6700/1.6750 Direction of Trade: → Chart Levels: Support Resistance 1.6556 " 1.6627/1.6638 1.6536 1.67 1.65 1.675 1.6465 1.68 1.6400* 1.6844 USDJPY Comment: A small 'spike low' yesterday might make things a bit more difficult today. However, as bearish momentum has increased and moving averages set to cross to bearish any moment now, eventually we ought to break down. Today and tomorrow continue to allow for very slow work, cautiously probing the downside. Strategy: Sell at 89.85; stop above 90.40. Short term target 89.35, eventually 88.25. Direction of Trade: → Chart Levels: Support Resistance 89.60 " 89.99/90.04 89.29 90.19/90.38* 89.18/89.00* 90.86 88.85 91.34* 88.25* 91.65** EURJPY Comment: The 'triangle' of the last seven days or so may look neat and pretty but it gives no indication of the next direction and how far it might go. In fact it is a waste of space. At the moment while very frustrating, there is no reason to question our slightly bearish outlook. Strategy: Attempt shorts at 134.65/135.00; stop above 135.75. Short term target 133.00, then 132.00. Direction of Trade: → Chart Levels: Support Resistance 134.00 " 135.02 133.8 135.15 133.2 135.40/135.76* 132.5 136 131.00* 137 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.