Forex Technical Update
Euro: Euro traded in a thin range initially as compared to cable, however, in the mid - US session it fell to the lows of 1.2855. The 4-hourly charts are showing a strong upmove, which could be restricted around 1.3080 levels (21 4-Hourly EMA). The daily charts continue showing a downside even though in the oversold region. Shorts can be considered around those resistance levels for intraday 100 pips (Eur/Usd: 1.2957).
Pound: Sterling lost heavily against the dollar as it again weakened more than 600 pips in yesterday's session testing 1.3829 levels (first time since June 2001).The bias continues to remain weak, however with the 4-hourly charts extremely oversold a bounce back upto 1.4225 (38.2% Retracement of the recent fall in 4-hourly) can be witnessed. Short positions can be taken there for 100 - 120 pips. (Gbp/Usd: 1.3956).
Yen: The Usd/Jpy pair weakened almost 130 pips in yesterday's trading session taking resistance at 90.90 (21 Daily EMA) as expected. The 4-hourly charts have corrected to oversold region whereas the daily charts are still indicating further downside for the pair. Shorts can be initiated around 90.70 & 93.00 levels for 100-120 pips. (Usd/Jpy: 89.86)
Rupee: The local unit weakened yesterday closing at its multi-week low of 49.23 levels against the greenback. This was primarily due to the strength in the US dollar across the board which brought the fear of withdrawal of foreign funds from the Indian market. It closes at 48.65/$ on Monday. The one month NDF offshore rate quoted at 49.35/45 giving a clear bearish signal for the rupee. (USD/INR:49.20)
Swiss Franc: Usd/Chf pair gained 200 pips yesterday closing the session at 1.1497 after touching the highs of 1.1517. The daily charts are over-bought while the 4-hourly charts are giving strong selling bias. Intraday shorts can be considered at the uptakes. Cluster support comes in around 1.1250 – 1.1270 levels. (Usd/Chf:1.1424)
Australian Dollar: Australian Dollar fell 240 pips yesterday making a low of 0.6462. The daily and the hourly charts are indicating a downside for the pair while the 4-hourly charts have corrected in the over-sold region. Shorts can be initiated around 0.6630 (50% retracement of the rise in the daily charts and 21 4-hourly EMA) for intraday 100 pips. (Aud/Usd-0.6560)
Gold: Gold traded strong yesterday as the investors parked their money in gold. It touched the daily high of $866 levels from the lows of $823. Currently it is holding the 21 hourly EMA($849) from where it can surge higher as the hourly and daily charts are moving upward. However, the 4-hourly charts are giving a downside bias, thus if this support is broken decisively, then the next cluster support is seen at $837 levels. Cautious shorts can be considered below $850 levels for intraday $10-$12. (Gold: $851.15)
Dollar index: Dollar Index surged to touch the 87 levels yesterday, and is currently trading at 86.54 levels with the stochastic being over-bought at 90.92%.
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.
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