Forex Technical Update

Euro: The resistance of 21 Daily EMA remained crucial as Euro surged to 1.2813 levels in the mid-US session, however plunged back to test the bids of 1.2473 in yesterday's trade. Immediate resistance comes in at 1.26 levels (21 4-hourly EMA) with the charts showing some buying pressure. The overall outlook remains on the downside below the important resistance of 1.2785 (21 Daily EMA). Shorts can be initiated around 1.2700 -2750 levels for 100-120 pips. (Eur/Usd: 1.2510).

Pound: Cable remained silent during the European session yesterday, however with the open of US session, volatility was witnessed. Cable broke past the 1.51 level and surged upto 1.5248 levels (55 4-hourly EMA). Equally fast, cable gave up all its gains as it came rolling back to 1.4930 levels (current). The hourly and 4-hourly charts are indicating little upside which may bring a test of 1.50 cluster resistance. Shorts can be initiated there for 100 pips. Break below 1.49 can push cable further to 1.46 levels. (Gbp/Usd: 1.4928)

Yen: USD/JPY pair was weak yesterday shedding close to 154 pips after Dow & Asian markets showed further weakness on fears of recession. It tested the bids of 95.55 before closing at 96 levels. The 4-Hourly & Hourly charts are oversold & the Daily charts show further downfall. Intraday shorts at 96.30 (55 Hourly EMA) levels for 80-90 pips can be initiated. (Usd/Jpy 95.14)

Rupee: The local currency opened at its all time weak of 50.40 against dollar today morning due to tumbling stocks. It closed weaker yesterday at 50.02 against its previous close of 49.64. This weakness was mainly due to the heavy demand from importers along with the crashing Asian shares prompting many banks to buy dollars. The rupee has depreciated 25% in the last 6 months out of which 11% is in the last 2 months itself. The bias continues to be on the downside. (USD/Re: 50.50)

Swiss Franc: The pair continued its rally by another 200 pips yesterday making a high of 1.2144 surpassing the 1.2080 levels (55 Monthly EMA). The pair has broken the rising triangular trendline on the upside indicating further bullish bias for the pair. The major stochastic are oversold while the hourly charts give slight selling bias. The immediate support comes in at 1.2050 levels where intraday longs can be considered for 80 pips. Focus is on the Swiss Trade balance data today. (Usd/Chf: 1.2109)

Australian Dollar: The pair weakened 236 pips touching the lows 0.6358 levels as it continued to hold below the 21 Daily EMA at 0.6590. The major stochastic indicate a downside inferring that the outlook is bearish for the pair. Resistance for the pair is seen at 0.6450 (55 Hourly, 21 4-Hourly) where intraday shorts can be considered for the pair. On the downside 0.63 levels can be retested. (Aud/Usd-0.6342).

Gold: Gold gained almost $30 yesterday touching the highs of $760 for the day. It broke the consolidating range of $750 - $733 levels but immediately retraced back to close the session at $736 levels. The major charts indicate a downside for the yellow metal thus going short on gold around resistance levels of $745 can be considered. (Gold: 738.40)

Dollar index: Dollar index is holding and trading strongly in the 88 range with the stochastic around 73.56%

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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.