Forex Technical Update

Euro: Major sell off was witnessed in Euro as the currency came crashing down to 1.3546 levels, almost 415 pips from the highs (as expected yesterday). Currently Euro is trading around 1.3610 with the charts getting almost oversold. Although, the overall bias continues to remain bearish, immediate support can be seen around 1.3498 (55 daily EMA) where partial profits should be booked on the short positions. (Eur/Usd: 1.3608).

Pound: Cable remained range bound until the US session yesterday where dollar weakness was witnessed taking Sterling to the highs of 1.4738 from the bids of 1.4431. The 4-hourly stochastic is highly overbought while the hourly is now oversold. Slight upside could be witnessed and Cable may be seen taking resistance at the 100-4hourly EMA at 1.4780. Shorts can be initiated there for 80-100 pips gain. The overall bias remains on the downside. (Gbp/Usd: 1.4655).

Yen: Dollar-Yen pair further strengthened to touch 93.57 levels in yesterday's trade as investors were seen selling Japanese Yen. Technically, the 4-hourly and daily charts are completely overbought while the hourly has room for a further upmove. The upside could be capped around 94.60 (55 Daily EMA) where short positions for 150-200 pips is recommended. (Usd/Jpy: 92.98).

Rupee: The local unit witnessed a volatile session yesterday as it opened with a strong gap-up at 48.10 levels however lost most of it gains in the late trading session making intraday trough of 48.70 levels. It finally closed at 48.57 against the greenback having little change from Friday's close despite stocks closing higher yesterday. The demand for dollar by large state-run bank reversed the sentiment in the late trading session. This also makes the overall bias for the rupee to continue being bearish. (USD/INR: 48.68).

Swiss Franc: The USD/CHF pair fortified its gain yesterday by touching the highs of 1.1122 holding good the resistance of 200 daily EMA. The daily and 4-hourly charts are overbought however correction can be seen any-time for which going short can be considered at 1.1135 – 1.1145 levels (200 & 21 daily EMA) for 80 pips gain. (Usd/Chf:1.1107).

Australian Dollar: Aussie strengthened to 0.7200 levels although it traded in less than 140 pips forming a doji. The daily and 4-hourly charts are in the overbought region with immediate resistance at 0.7280 (100 Daily EMA). Shorts can be initiated around those levels for 70-80 pips. On the downside 0.6900 levels should hold. (cluster support of the EMA's).(Aud/Usd-0.7126).

Gold: Gold touched $884 levels in the early trading session yesterday but lost most of its shine during the course of the day by making the lows of $845 levels (as anticipated yesterday). Cluster resistance comes in at $863 levels where going short on gold can be considered as the major stochastics are indicating further downside upto $841. (Gold: $853.55).

Dollar index: DI is trading at 83.63 levels with the stochastic moving towards the over-bought region poised at 84.84%.

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.