Daily Forex Technicals | Written by India Forex
Rupee : Rupee opened a little strong on broad dollar weakness overseas. It is likely to be in the range of 46 to 47 till December end. We are likely to witness some profit booking in global asset classes before Decemeber which can make the rupee slightly weaker towards 46.90 levels again. Importers take advantage of levels close to 46 and exporters wait for booking. The overall trend if rupee still remains bullish.(USDINR - 46.25) Bullish.
Euro : EURO is making a rising wedge pattern with clear divergence in the daily and weekly charts. Usually this kind of pattern leads to a strong correction downwards. The levels of 1.5060 broke yesterday, we need a closing above that levels for couple of days to maintain further bullishness. Incase levels of 1.5060 breaks down again supported by crude below 75 dollars we are going to see a steep bearish move downwards towards a 1.4625 and 1.4450 levels in medium term. (EURUSD-1.5113). Neutral.
Sterling: GBP attempted to push higher towards a 1.6747 yesterday, but unable to move up despite a very strong euro move due to bearish pressures. Break of 1.6650 would make the bias clearly bearish for cable. Staying above 1.67 continuously would support bullishness. (GBPUSD - 1.667) Neutral to Bearish
Yen : JPY gave us the breakdown below range area at 88.80 signaling bearishness. The target seems to be 85 next.(USDJPY - 86.3) Bullish
Aud : AUDUSD had a bullish momentum yesterday, topped at 0.9321 and closed at 0.9317. We had some bearish pullback earlier today in Asian market but one significant development is seen that AUD is unable to rise despite higher GOLD prices seen across, Downside Pressures are mounting in aud again but as long as price move in the bullish channel area , shorts should not be initiated. Technically we have important resistance around 0.9327 area.(AUDUSD - .9217) Neutral to Bullish
Gold : Gold's rally resumed by taking out $1153.4 and reaches another record high of $1193 currently .Short term outlook will remain bullish as long as $1132.5 support holds. Sustained trading above $1166.9 will target $1200 psychological resistance next. On the downside, below $1132.5 will indicate that a short term top is formed, possibly with bearish divergence in short term charts. Some pull back should be seen but downside should be contained above $1072 resistance turned support and bring rally resumption.(Gold - $1193) Bullish but Overbought.
Dollar Index: Dollar index dropped through 74.8 support to as low as 74.40 today so far. Based on the strength of the current fall, 74.31 support looks vulnerable. In particular, further strength in gold will likely put additional pressure to the greenback in general. But near term support will likely limit the momentum in dollar's fall unless we sees sharp accelerations in gold prices.(DI - 74.25) Neutral
