Forex Technical Update

Euro: The pair lost around 200 pips from its days high of 1.3685 and made a low of 1.3487 yesterday. Euro further plunged and touched the lows of 1.3347 this morning. T recent low of 1.3250 looks like a good support for the pair and on the upside resistance for the pair is seen at the 55 4-hourly charts (1.3675). The major stochastic is indicating a downside and a retest of these lows cannot be ruled out. However, pullback from those levels could be witnessed. (Eur/Usd:1.3385).

Pound: Cable plunged from its important resistance of 1.76 (55 4-hourly EMA) and touched the lows of 1.7133 in yesterday's session. The hourly and daily charts are indicating downside whereas the 4-hourly stochastic is extremely oversold and indicating buying pressure. Immediate resistance comes in at 1.7345 (21 4-hourly EMA) breaking which Cable can go a little higher upto 1.7431 levels (55 4-hourly EMA) where intraday shorts can be considered for 60-70 pips. (Gbp/Usd: 1.7285).

Yen: US Dollar remains strong against major global currencies except the Japanese Yen mainly due to risk aversion and Dow loosing ground. Usd/Jpy shed all its gains on Wednesday & touched the lows of 99.57 in the late US session. The immediate resistance is seen at 100.54 (21 Hourly EMA & 50% retracement of the recent rise in the charts). The Hourly and Daily charts indicate a downside while the 4-Hourly charts are extremely oversold. Resistance comes in around 101 levels where cautious shorts can be considered. (Usd/Jpy 100.22).

Rupee: Rupee shows further bearishness against dollar. It is currently around 48.80 after making a low of 49.25 today morning. Rupee closed at 48.51 yesterday and was weighed down by heavy dollar demand overseas and the crashing stock markets. Yesterday RBI slashed CRR further by 100 bps to 6.5% but this will take time to show its impact in liquidity & may bring some hopes of recovery in the Rupee. (Usd/Inr: 48.77).

Swiss Franc: Usd/Chf pair shed almost 100 pips yesterday from its days high of 1.1400 but has been trading above 1.1450 in the Asian session today. The previous high of 1.1485 remains a good resistance on the upside. A break of this level may take the pair 100 pips higher. Immediate support on the downside is seen at the 21 hourly EMA where longs could be generated targeting 60 pips on the upside. (Usd/Chf: 1.1480).

Australian Dollar: Aussie again was the most affected against dollar as it lost 500 pips from its days high of 0.7070 yesterday. On the downside the recent low of 0.6330 remains a decent support for the pair. Immediate resistance for the pair is seen at the 100 hourly EMA (0.6880). A buy signal on four hourly stochastic suggests a small pull back is on the cards. Traders could use this rally as a good opportunity to take short positions. (Aud/Usd-0.6660).

Gold: Gold traded within the range of $25 yesterday touching the low of $831.20 before taking resistance at the 21 Daily EMA at $856.50. The hourly stochastic is showing an upside whereas the daily stochastic is highly oversold. The immediate cluster resistance is seen around $854 & $860 levels (200 4-hourly and daily EMA) whereas on the downside $834 should hold. (50% retracement from the high of $931.03). (Gold: $841.15).

Dollar index: Dollar index is strong and is trading at 82.58 levels with the stochastic being in the overbought region at 80.66%.

India 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.