Forex Technical Update
Euro: Euro was unable to sustain at 1.49 levels and was sent 145 pips lower in Friday's session. Early this morning the currency marked a low of 1.4696. The daily chart is turning mid-way to indicate selling pressure while the hourly & 4-hourly shows slight upside. Immediate resistance comes in at 1.4857 (55 4-hourly EMA) where shorts could be considered. On the downside 1.45 constitutes an important support and going long there could be estimated. (Eur/Usd: 1.4724).
Pound: Cable's short term rally ended on Friday as it sharply deteriorated to touch 1.8504 low against the greenback after disappointing GDP of the UK. Cable further fell to touch 1.8404 in the early morning session today. Further downside may be witnessed with daily charts showing selling pressure. Reversal pattern of bearish divergence is seen in the daily chart and if cable closes below 1.85 levels today, it can send Sterling to 1.8030 levels. UK Market is closed on account of Spring Bank Holiday. (Gbp/Usd: 1.8427).
Yen: The USD/JPY pair recouped all its losses as it surged to touch 110.13 levels on Friday. Although the daily stochastic shows slight buying pressure, the hourly and 4-hourly charts indicates selling pressure. Downside could be curbed around 109 levels (21 Daily EMA, 55 Weekly EMA) where intraday opportunities to enter long can be considered. (Usd/Jpy: 110.04).
Rupee: After hitting the 17-month low of 43.87 last week, Rupee marginally appreciated on account of dollar inflows through Foreign Investments. This relief could be temporary until and unless RBI intervenes to stall the sharp decline of rupee. In the forward premia market, the 6-month closed at 3.77 per cent (3.89 per cent) and the 12-month ended at 3.05 per cent (3.11 per cent). (Usd/Inr: 43.52).
Swiss Franc: Usd/Chf pair strengthened almost 145 pips from the day's low of 1.0853 on Friday. The Daily chart is neutrally poised while the other stochastic is overbought and seeks correction. Currently the pair is taking resistance at 1.1045 levels (50% Retracement of the fall in weekly charts) and a pullback upto the support at 1.0890 (55 Weekly & 4-hourly EMA) can be seen. However, a decisive break of 1.1045 could take the pair to 1.13 levels (100 Weekly EMA). (Usd/Chf-1.1015).
Australian Dollar: Aussie remained weak and shed 167 pips to close at 0.8663 on Friday. The 4-Hourly & Weekly charts are oversold, however the daily continues to show a downside. If 0.86 (minor support) is held it can push Aud to the immediate resistance at 0.8684 and beyond to the cluster resistance of 0.8710 levels (50% retracement of recent fall & 21 4-Hourly EMA).(Aud/Usd-0.8636).
Gold: Gold touched a high of 837.60 before shedding almost $17 and closing at $822.70 in Friday's session. Gold is facing strong resistance at $853 levels (38.2% Retracement & 21 Daily EMA) with daily stochastic correcting in the overbought region. Contrarily the 4-hourly chart is heading towards oversold region and $800 levels (minor support) could be maintained. (Gold: $821.10).
Dollar index : Dollar index showed a good come-back as it is currently trading 81 points higher than Friday at 77.15 supported by 80.74% stochastic clearly indicating an upside.
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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