FX Technical Analysis
EURUSD
Comment: Moving up slowly towards 1.5555/1.5600, as expected. Short-covering could easily take us up to 1.5700 over the next few days and would probably shake the complacent.
Strategy: Attempt longs at 1.5560, adding to 1.5500; stop below 1.5360. Short term target 1.5590, then 1.5650/1.5700.
Direction of Trade: →
Chart Levels:
| Support |
Resistance |
| 1.5507 |
1.5571 |
| 1.5450 |
1.5600* |
| 1.5400 |
1.5620 |
| 1.5360* |
1.5650 |
| 1.5285* |
1.5700* |
GBPUSD
Comment: Trying hard but could do just a bit better. A 'bullish engulfing' candle yesterday gives a hint as to what could be if momentum were bullish. Expect another attempt at a rally today. Wait and watch for a reversal pattern on the weekly chart.
Strategy: Attempt longs at 1.9540; stop below 1.9400. Short term target 1.9625, eventually 1.9800.
Direction of Trade: →↗
Chart Levels:
| Support |
Resistance |
| 1.9516 |
1.9575 |
| 1.9503 |
1.9635* |
| 1.9459 |
1.9675 |
| 1.9441* |
1.9735 |
| 1.9337** |
1.9800* |
USDJPY
Comment: Consolidating between the 9-day and 26-day averages, below the immediate trendline and above a decent-sized 'cloud'. Expect more of the same this morning with an initial upside probe fizzling out between 104.00 and 104.50 by lunch time. Then drifting very slowly lower.
Strategy: Sell at 103.75, adding to 104.15; stop above 105.00. Short term target 103.00/102.75, eventually 101.50.
Direction of Trade: ↘
Chart Levels:
| Support |
Resistance |
| 103.60 |
104.00 |
| 103.00 |
104.15 |
| 102.75 |
104.45 |
| 102.57* |
104.55 |
| 102.20 |
104.95* |
EUR/JPY
Comment: Watch for stalling against the 162.00 area this morning. If not today then later this week prices should drift back down to 159.00.
Strategy: Sell at 161.40; stop above 162.25. Short term target 159.50 then 158.35, probably 156.00 by the end of the month
Direction of Trade: →↘
Chart Levels:
| Support |
Resistance |
| 161.00 |
161.53 |
| 160.60 |
162.00* |
| 160.00 |
162.50 |
| 159.00 |
163.10* |
| 158.60* |
163.50 |
Mizuho Corporate Bank
Disclaimer
The information contained in this paper is based on or derived from information generally available to the public from sources believed to be reliable. No representation or warranty is made or implied that it is accurate or complete. Any opinions expressed in this paper are subject to change without notice. This paper has been prepared solely for information purposes and if so decided, for private circulation and does not constitute any solicitation to buy or sell any instrument, or to engage in any trading strategy.
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