Forex Technical Update
Euro: Euro came under pressure yesterday due to continued deterioration of economic data of Eurozone and tested the bids of 1.5628 but later showed strength and closed at 1.5679. All the major stochastic show an upside hence a retracement till 1.5785 (55 4-hrly EMA & 38.2 % Retracement 4-hrly charts) can be expected. (Eur/Usd: 1.5717).
Pound: Pound fell heavily to touch a low of 1.9817 (55 & 100 Daily EMA) as UK retail sales hit a record low but later gained some steam and closed at 1.9862. All its major stochastic shows a strong upside hence a retracement till 1.9950 (38.2% Retracement of recent fall in daily charts) can be expected. Looking ahead GDP data to be released today expected at 0.2% vs. 0.3%. (Gbp/Usd: 1.9873).
Yen: USD/JPY tracked the equities as it surged to high of 107.97 but came under pressure in the US session to touch a low of 107.18 on the back of weak global equities. The pair is currently taking strong support at 106.70 (21 daily EMA & downward trendline) and with the hourly and 4-hourly stochastic showing an upside a retracement till 107.60 (200 daily EMA & upward price channel support) can be expected. Initiate cautious longs here with a target of 50 pips. (Usd/Jpy: 106.60).
Rupee: Rupee surged strongly for the second consecutive day and breached 42-level in more than two months amid rising stock markets and easing global oil prices. It resumed firm at 41.92/93 a dollar from its last close of 42.09/10 a dollar and later appreciated further to 41.84/85 but later ended the day weaker at 42.13 levels.(Usd/Inr: 42.25)
Swiss Franc: USD/CHF was extremely range-bound as it traded within 53 pips and was unable to break the critical 100 daily EMA at 1.0405. The Daily stochastic is in the overbought region while Hourly & 4-Hourly stochastic are extremely oversold, thus a retracement till 1.0400 (21 weekly & 100 daily EMA) cannot be ruled out. (Usd/Chf-1.0334).
Australian Dollar: Aussie was unable to recover as commodities remained weak and risk aversion spiked as it fell 95 pips to a low 0.9540 before closing higher at 0.9584. The daily stochastic is overbought while the hourly and 4-Hourly show buying pressure which can cause a rise upto 0.9635 levels (21 4-Hourly & Daily EMA, 38.2% Retracement of the recent rise in Hourly). (Aud/Usd-0.9584)
Gold: Gold gained $16 after taking support at $916 (50% Retracement of recent rise in weekly charts) before closing at $927.50. The daily stochastic has corrected in the oversold region while the hourly & 4-Hourly stochastic is overbought. Immediate resistance comes in around $937 (100 Hourly EMA, 21 4-Hourly EMA & 21 Daily breaking which gold can test $950 mark. (50% retracement of recent fall). (Gold: $934)
Dollar index: Dollar index is currently at 73.04, 10 points higher than yesterday's level of 72.94. The stochastic is at 79% and showing further upmove. Medium term target 75.00.
RCPL FOREX
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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.
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