Forex Technical Update

Euro: Euro was dragged to a low of 1.4630 despite strong economic sentiment of the Eurozone, however pared most of its losses in the US session as it sped to mark a high at 1.4793 making a bullish divergence reversal pattern. The hourly and daily stochastic is oversold showing buying pressure while the 4-hourly is overbought and correction upto 1.4740 (55 Hourly EMA) could be seen. Sustaining above these levels could push Euro to 1.4925 levels. Opportunities to initiate longs could be considered around those levels. (Eur/Usd: 1.4771).

Pound: Cable is holding above the important support of 1.85. Cable surged 142 pips from the lows of 1.8536 yesterday. Currently cable is facing stiff resistance from the 21 4-hourly EMA at 1.8683 levels supported by stochastic which is overbought. Breaking of this resistance can push Cable towards 1.89 levels (55 4-hourly EMA). The daily & weekly stochastic is also extremely oversold and opportunities to initiate longs around 1.8630 levels could be considered. (Gbp/Usd: 1.8663).

Yen: USD/JPY pair weakened slightly as it touched a low of 109.54 from the highs of 110.32 yesterday. The pair is trading above the short term trend line support of 109.30 with the 4-hourly charts showing buying pressure. However the hourly and daily is overbought and due for some correction. Opportunities to initiate longs around 109 levels could be considered. (Usd/Jpy: 109.81).

Rupee: The domestic currency loses steam at it has sharply declined against the USD and touched a low of 43.87 today on account of heavy dollar buying by oil companies and other corporates. Intervention by the Central Bank may check a sharp fall of the domestic currency. Domestic Currency Market was closed yesterday. (Usd/Inr: 43.72).

Swiss Franc: Usd/Chf pair made a six month high of 1.1032 yesterday witnessing a movement of 131 pips. The Hourly & Daily charts are showing selling pressures with immediate cluster resistance coming in around 1.0930 levels. Although the 4-Hourly is oversold and showing an upmove retracement upto 1.0860 can be seen where initiating longs could be considered. (Usd/Chf-1.0930)

Australian Dollar: Aussie witnessed a move of 110 pips in yesterday's session touching a high of 0.8732. The daily and the weekly charts continue to remain oversold while the 4-hourly and hourly indicates selling pressure. Cluster support comes in around 0.87 levels which if held can push Aussie towards 0.8815 (55 4-hourly EMA) and beyond towards cluster resistance around 0.90 levels. (Aud/Usd-0.8720).

Gold: The lost shine of Gold made a comeback as it surged $34 firmly breaking the trend line and 21 4-hourly EMA at $801.15 in yesterday's session, Gold is facing immediate resistance at $824.33 (55 EMA 4 hourly). Decisive break of this resistance can push gold towards $865 (21 & 200 Daily EMA and 50% retracement of the recent fall). (Gold: $816.60).

Dollar index: Dollar index shed some of its gains yesterday and is currently trading at 76.96 levels. The stochastic has also moved downward to 89.70%.

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.