Forex Technical Update
Euro: Euro remained volatile yesterday as it traded within 152 pips to touch the low of 1.4466 before finally closing at 1.4519. All major stochastic are highly oversold, however, there is no clear buy signals yet. The immediate support can be seen at 1.4373 (100 weekly EMA) breaking which can see Euro breaking 1.43 levels. The GDP data from the Eurozone today is the key focus. (Eur/Usd: 1.4432).
Pound: Cable further nosedived yesterday shedding almost 233 pips to touch the low of 1.7780 before closing at 1.7837. Early morning session also witnessed turmoil as cable was pushed lower to 1.7703 levels. The 4-hourly and daily stochastic remain extremely oversold and the immediate support can be witnessed at 1.75 levels. Some retracement is probable in the coming few session and focus remains on the interest rate decision due tomorrow. (Gbp/Usd: 1.7725).
Yen: USD/JPY rebounded strongly after diving to 107.62 yesterday witnessing overall of 140 pips movement to finally close at 108.60. The hourly chart is extremely overbought while the 4-hourly and daily charts are showing some buying pressure. Cluster support is coming in at 107.70 levels where intraday longs can be initiated targeting 60 pips. (Usd/Jpy: 108.95).
Rupee: Rupee weakened the most in more than 17 months in volatile trading session on Tuesday witnessing a move of 42 paisa and the day's trough was the rupee's lowest since March 5, 2007, when it touched 44.6950 after dollar strengthened against a basket of currencies. It finally closed at 44.38/44.39 per dollar proving a 1.4% drop in first 2 days of the month. Financial market is closed on Wednesday and trading resumes on Thursday. (Usd/Inr: 44.42).
Swiss Franc: The pair surged almost 120 pips yesterday to touch the high of 1.1129 breaking past the retracement resistance of 1.1050. However, failed to sustain the 1.11 levels and closed at 1.1065. All the major stochastic are showing buying pressure and if the pair sustains above 1.1050 levels, Swissy can weaken upto 1.13 levels (100 Weekly EMA). (Usd/Chf-1.1108).
Australian Dollar: Aussie nosedived yesterday after the 25 bps rate cut to as low as 0.8269 witnessing overall 264 pips movement. Although all major stochastic are over-sold bias continues to remain on the downside. Intraday shorts can be initiated at 0.83 levels looking forward to Aussie taking the next support of 0.81 levels (rising trendline). (Aud/Usd-0.8267).
Gold: Gold remained highly volatile trading in $30 to touch the high of $819.60 with the low of $790.30 but managed to close at $804.85 in the last trading session. The hourly and the daily charts are showing selling pressure and decisive break of $800 levels can push Gold further down to $770 levels else further consolidation between $800 - 835 could be seen. (Gold: $799.90).
Dollar index : Dollar index has broken the important resistance of 78 levels and is trading at 78.49 currently with the stochastic highly overbought at 93.36%. The dollar Index is due for some correction.
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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