Forex Technical Update

Euro: Euro extended its gains in the yesterday's session as it gained 52 pips from the opening levels of 1.5791 to touch a high of 1.5843 but it showed some weakness and plummeted to close at 1.5618 in the U.S. session. A strong support comes at 1.5546 (trendline support & 55 daily EMA) which should hold and the pair should retrace to the levels of 1.5650 (21 & 55 Hourly EMA). (Eur/Usd-1.5588).

Pound: Pound surged from the low of 1.9671 and scaled up to a high of 1.9800 on the back of strong economic data. The daily stochastic is close to overbought region while the 4-hrly and hourly shows a fall. A strong resistance comes at 1.9800 (100 daily EMA) a decisive break of this level is required to confirm a bullish bias otherwise the bearish bias will prevail. Cautious shorts can be initiated at those levels targeting 50- 60 pip. (Gbp/Usd- 1.9688).

Yen: USD/JPY pair showed a good recovery in the US session as it surged up from the day's low of 104.44 to a high of 106.36 and later closed at 106.28. The daily and hourly stochastic are close to the overbought region while the 4-hourly has flattened in the overbought region. The pair has been closing above 105.60 (horizonatal trendline support) in past few sessions hence indicating a strong bias on the upside and an upmove upto 107.86 (200 daily EMA) can be expected in next few sessions. (Usd/Jpy- 106.76).

Rupee: Rupee fell by 20 paise on the back of high oil prices and the huge fall in the domestic equity index. On Monday, the rupee opened lower at 42.90/92, then touched a low of 42.95 before closing at 42.86 against the previous close of 42.66. For major part of the day the rupee was range bound at 42.88-42.90.The forward premia moved as importers bought forwards, in expectation higher oil price. The six-month premia closed at 2.58 per cent (2.26 per cent) and the 12-month at 2.11 per cent (1.9 per cent). (Usd/Inr- 42.89)

Swiss Franc: USD/CHF pair surged by 148 pips from the low of 1.0148 before finally closing at 1.0274. The 4-Hourly stochastic is overbought while the daily stochastic indicate that the pair can strengthen further. The pair is currently facing resistance at 1.0317 levels (100 Hourly EMA) which if breaks a retracement till 1.0355—1.0365 ( cluster resistance in 4-hrly and daily charts & 50% retracement in daily chart) should be witnessed. (Usd/Chf-1.0313).

Australian Dollar: AUD/USD pair remained strong as it traded within 77 pips as it surged from the day's low of 0.9564 to close at 0.9641 on Friday. The Hourly stochastic is completely oversold while the daily indicates room for further upmove. Critical support comes in around 0.9585 levels (55 4-Hourly EMA, 38.2% retracement of the latest rise in 4-Hourly chart) on failing to break which the pair should remain strong close to almost two and half decade high of 0.9650 levels.(AUD/USD- 0.9484)

Gold: Gold fell heavily from the day's high of $909.10 to end yesterday's session at $892. The Hourly stochastic is completely oversold while the daily and Hourly indicate buying pressure. Immediate support comes in at $886.90 on failing to break which an upmove till $904.88 levels (61.8 % retracement of the latest fall in daily) can be witnessed. (Gold - $899.90)

Dollar index: Dollar index: Dollar index is currently at 73.21, 0.81 points higher than previous levels of 72.62. Stochastic is currently at 64.27% and showing an 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.