Forex Technical Update

Euro: Euro surged by 205 pips from the intraday low level of 1.5365 before closing slightly lower from the days high at 1.5553. The 4-Hrly stochastics is in the overbought region while the Daily & Hourly charts still show an upmove. Critical resistance comes in at 1.5570 levels (Yesterdays High, 21-Daily EMA & 38.2% of the fall from 1.6019 to 1.5284) on failing to break which Euro should dip to a low of 1.5465 (100 Hourly EMA, 21 4-Hrly EMA & 50% retracement of the recent rise). (Eur/Usd-1.5545).

Pound: Pound traded within 111 pips as it strengthened on the back of good PPI data as it touched a high of 1.9632 levels but later weakened to close at 1.9577. The Hourly & daily charts show an upmove while the 4-Hrly still shows selling pressure. The pair is currently facing resistance at the 1.9545 levels (21 Hrly & 55 Hrly EMA), but strong CPI data expected today should lead cable toward 1.9635 levels (200 Hrly & 55 4-Hrly EMA). Look for opportunities to short at those levels for an intraday gain of 50 pips. (Gbp/Usd- 1.9532).

Yen: The USD/JPY pair surged by 146 pips as it was capped at 104.03 levels (55 4-Hrly EMA & 50% retracement of the fall from 105.56 to 102.57). All the charts indicate buying pressure. The pair is currently taking support at the 103.65 levels (21 & 55 Daily EMA, 38.2% retracement of the fall from 105.56 to 102.57), on holding which it should surge to 104.42 levels (61.8% retracement of the fall from 105.56 to 102.57). (Usd/Jpy- 103.76).

Rupee: The rupee went past the 42 mark as weak IIP data raised concerns about a slowdown in the economy. It ended at 42.05/06 per dollar, more than 1 per cent down from Friday's close of 41.60/61. The rupee has lost 6.3 per cent against the dollar in 2008. (Usd/Inr- 42.16).

Swiss Franc: USD/CHF has been trading below the upward trend line support in the last few trading sessions. A very strong support comes at 1.0365 (21 and 55 daily EMA and 23.6 % retracement daily charts), a break of this support will give a bearish bias for the pair. On the contrary on the upside a break of 1.0570 (100 daily and trend line resistance) is required to indicate an upward trend. (Usd/Chf-1.0422)

Australian Dollar: Aussie surged by 123 pips to touch an intraday high of 0.9478. The 4-Hourly charts are overbought while the Hrly & daily stochastics show further buying pressure. The pair seems to be forming a near-term peak around 0.9480 - 0.9500 levels. Look for opportunities to go short at those levels for intraday day gain of 40 pips. (Aud/Usd - 0.9462).

Gold: Gold traded in a range of $12 and closed almost at par with the opening levels of $882.It is facing stiff resistance at $890 (100 and 21 daily EMA). The daily stochastics shows a fall hence a downmove upto $870 (50 % retracement in daily charts) can be expected. (Gold - $878.90).

Dollar index: Dollar index is currently at 73.20 thus loosing 0.27 points from yesterdays level of 73.47. The daily stochastic is at 64% level and its indicating selling pressure. 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.