Forex Technical Update

Euro: Euro surged by 97 pips from the days opening level of 1.5392 to touch an intraday high of 1.5489 (55 4-Hrly EMA) before closing slightly lower at 1.5481. The 4-Hrly stochastics shows selling pressure along with the Daily charts showing a downmove. Immediate resistance comes in at 1.5489 levels (55 4-Hrly EMA) on failing to break which Euro should dip to a low of 1.5240 (100 Daily EMA & 50% retracement of the rise from 1.4439 to 1.6019). Look for intraday opportunities to initiate longs at those levels. (Eur/Usd-1.5375).

Pound: Pound traded within 111 pips as it was capped at 1.9569 levels but later weakend to test bids at 1.9458 (resistance turned support) before weakening to close at 1.9542. The Hourly & daily chart are in the oversold region while the 4-Hrly still shows room for further selling. Critical support comes in at 1.9425 (resistance turned support). Look for opportunities to go long at those levels for an intraday gain of 50 pips. (Gbp/Usd- 1.9449).

Yen: The USD/JPY pair fell by 136 pips from the days high of 103.96 before closing little higher at 102.95 levels. The Hourly stochastic is extremely overbought while the 4-Hrly stochastics still shows strong buying pressure. The pair is currently trading close to the 200 4-Hrly EMA and taking resistance at 103.65 levels (21 & 55 Daily EMA), a break of the same can lead to a surge upto 104.10 levels (50% retracement of the fall from 105.58 to 102.57 & 55 4-Hrly EMA). Opportunities to initiate longs at lower levels can be considered. (Usd/Jpy- 103.46).

Rupee: The rupee touched an intra-day high of 41.32 on Friday on the back of heavy dollar selling by exporters, before finally ending the day at 41.60. Rupee should weaken further to breach the 42 mark. Forward premia on near-term contracts fell, as the one-month contract ended the day at 2.80% (3.01%). Exporters should look for opportunities to partially hedge their near term exposure. (Usd/Inr- 41.62).

Swiss Franc: The USD/CHF pair lost 125 pips as it fell to a low of 1.0389 in Fridays session. The daily stochastic shows a downmove while the 4-Hourly indicates strong buying pressure. The pair is currently taking resistance of the 21 4-Hrly and 55 Hrly EMA which if holds the pair should test the important support at 1.0370 levels (21 and 55 daily EMA, 100 4-hrly EMA & 50% retracement of the fall from 1.1106 to 0.9638). Look for opportunities to go long at those levels. (Usd/Chf-1.0500).

Australian Dollar: Aussie closed almost at par with the opening level 0.9434 after it had dipped to a low of 0.9383 on Friday. The Hourly charts are extremely oversold while the 4-Hrly & daily stochastics show further selling pressure hence a downmove upto 0.9340 (200 4-Hrly support) can be seen. Look for opportunities to go long at those levels for intraday day gain of 40 pips. (Aud/Usd - 0.9371).

Gold: Gold traded in a range of $19 in yesterdays session and fell to a low of $870.20 before gaining in the late U.S. session to close at 885.25 in the last trading session. The daily & 4-Hourly stochastics are in the overbought region. Gold is facing a strong resistance at $890 levels (21 & 100 daily EMA) which if holds, gold can even test the $845 levels (200 Daily EMA) in next few trading sessions. (Gold - $884.15).

Dollar index: Dollar index is currently at 73.47 thus loosing 0.12 points from yesterdays level of 73.59. The daily stochastic is at 78.40% level and its indicating a slight upmove. Medium term target 75.00

RCPL FOREX
www.rcplforex.com

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.