EURUSD
Comment: Catching up with what has been happening in some smaller currencies for the last three weeks. FX and some other markets are basically breaking out of large bands that have held since roughly October. Investors should sit up and take note because complacency will be very costly. A weekly close above 1.3700 would add to current strong bullish momentum. Note that above here there are no really strong resistance levels until the 1.4200 area.Strategy: Buy at 1.3915 but only if prepared to add to 1.3750; stop well below 1.3700. Short term target 1.3950, then a lot more with a first measured target at 1.4200 then 1.4550.Direction of Trade: →↗
Chart Levels:Support Resistance
1.3890 " 1.3942/1.3965*
1.383 1.4
1.375 1.406
1.3727 1.4125
1.3700* 1.4200*
GBPUSD
Comment: Massive volume on huge intra-day gyrations where much has been made by the media of S&P's threat it might downgrade UK debt. One wonders whether many care what grade these discredited institutions who happily have been grading toxic debt at AAA for years hands out. Maybe this is a veiled threat on US debt which they dare not whisper. Having met our first upside target and channel resistance around 1.5800 allow for some consolidation so that other currencies can catch up. Strategy: Buy on a dip to 1.5730, adding to 1.5550; stop well below 1.5400. Add to longs on a sustained break above 1.5900 for 1.6100/1.6200 short term.Direction of Trade: →↗
Support Resistance
1.5830 " 1.59
1.573 1.6
1.57 1.6100*
1.56 1.6200*
1.5470* 1.64
USDJPY
Comment: The lowest daily close since late February, again adding weight to our view that we have formed an important interim high. Thin markets today through to Tuesday could see moves gather considerable pace. A weekly close below 94.25 should add considerable downside pressure and note that the US dollar is not oversold. Strategy: Sell 94.15 but only if prepared to add to 95.00; stop above 96.25. First target 93.55, then 92.50.Direction of Trade: →Chart Levels:
Support Resistance
93.86 " 94.48
93.55* 95
93.3 95.27
92.50* 96.22
91.55 96.71
Daily Forex Technicals
Rupee: Rupee broke the 47 level in the early trade today poising a 5-month high. Next support for Rupee is traced around 46.60 levels. The strength in the local unit is due to dollar weakness across the board and Dollar Index declining continuosly. Importers can start booking near term contracts below 47.00 while exporters should look for retracements upto 48 to sell. (USD/INR : 47.10). Short term Bullish
% of the fall from 1.6038 to 1.2329). (Eur/Usd:1.3909). Short Term Bullish.
Gold: Gold was lifted to $955 due to the weakness in dollar. We maintain our view for going long at dips as the overall bias for gold is bullish. Bullish(Gold- 951.62).
Dollar Index: DX fell further for the 4th consecutive day to test 80.38 this morning. Our target of 80.20 (as mentioned in our charts) is nearing. The stochastic continues to be flat in the oversold region. (DI- 80.45) ) Bearish
Daily Forex Technicals epulse
EURO
The Euro versus Dollar pair continued to incline after correcting to the downside yesterday to reach the 23.6% as it breached the critical resistance at 1.3805 and near the 1.3950 level which may force the pair back to the downside. We expect the pair to correct to 1.3850 to build a solid base before rebounding back to the upside targeting 1.4100 on the short term as far as 1.3690 remains intact.The trading range for today is among the key support at 1.3580 and the key resistance at 1.4180. The general trend is to the downside as far as 1.4710 remains intact with targets at 1.2120.
Support: 1.3850, 1.3780, 1.3725, 1.3690, 1.3640
Resistance: 1.3950, 1.3990, 1.4055, 1.4100, 1.4180
Recommendation: According to our analysis, buy the pair above 1.3850 with targets at 1.4040 and stop loss with four hour closing below 1.3780
GBP
After correcting to the downside, the Cable rebounded to the upside towards the key resistance for the upside channel to touch it several times as seen in the above image where we expect to witness a slight downside correction on the intraday basis to reach 1.5760 and 1.5680 at most to gather bullish momentum before inclining on the short term to target 1.6300. The 1.5550 support level must remain intact for the incline to continue for today. The trading range for today is among the key support at 1.5550 and the key resistance at 1.6200. The general trend is to the upside as far as 1.4840 remains intact with targets at 1.6600
Support: 1.5760, 1.5680, 1.5645, 1.5550, 1.5490
Resistance: 1.5880, 1.5925, 1.6005, 1.6070, 1.6100
Recommendation: According to our analysis, buy the pair above 1.5760 with targets at 1.5880 and stop loss with four hour closing below 1.5680
JPY
The bearish pressure on the pair took the USD/JPY to the downside as expected to near our initial target at 93.50 where we still hold our outlook for further declines towards 92.40 on the intraday basis. We may witness high volatility in an attempt to gather momentum to decline and breach the minor support (near 94.00) and may build a solid base at 94.55 before reversing to the downside. The short term downside trend remains as far as 97.00 is intact. The trading range for today is among the key support at 91.90 and the key resistance at 97.00. The general trend is to the downside as far as 102.60 is intact with targets at 84.95 and 82.60
Support: 93.95, 93.50, 92.95, 92.40, 91.90
Resistance: 94.55, 95.25, 95.75, 96.45, 97.00
Recommendation: According to our analysis sell th epair below 94.55 with taregts at 93.50 and stop loss with four hour closing above 95.25
CHF
The Dollar versus Swissy fluctuated heavily around the 1.0980 pivotal support as it breached it to the downside nearing our second target at 1.0880. Momentum indicators show the pair being oversold which may result in an upside correction towards 1.0980 to retest the broken trend before reversing back to the downside. We still hold our outlook for further declines towards 1.0845 and 1.0745 before heading towards 1.0570 on the short term. This decline remains as far as 1.1125 is intact.The trading range for today is among the key support at 1.0745 and the key resistance at 1.1445
The general trend is to the upside as far as 1.0570 is intact with targets at 1.2245
Support: 1.0880, 1.0845, 1.0795, 1.0745, 1.0710
Resistance: 1.0980, 1.1035, 1.1075, 1.1125, 1.1165
Recommendation: According to our analysis, sell the pair below 1.0980 with targets at 1.0845 and stop loss with four hour closing aboce 1.1125
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