Euro: Euro moved sideways within 110 pips yesterday taking support near the 55 Daily EMA around 1.2930. Currently trading around 1.3040, all the major stochastic is overbought with immediate resistance coming at 1.3180 (100 Daily EMA & 38.2% Retracement of the fall). Shorts could be initiated there for 70 € 80 pips gain. (Eur/Usd: 1.3044).
Pound: Cable traded sideways within 170 pips yesterday capping the gains at 1.4132 and plunging to a low of 1.3964 in the U.S. Session yesterday. The Daily charts are turning mid-way to indicate a bearish bias for the currency, however, with the 4-hourly chart still showing an upside we may witness an upmove upto the immediate resistance at 1.4140 (falling trendline). Shorts could be initiated there for 80 € 100 pips. (Gbp/Usd:1.4032)
Yen: The Usd/Jpy pair continues to hover around the 200 Daily EMA. The pair traded in a thin range of 80 pips yesterday restricting itself below the 99-level. The hourly and daily charts continue to show an upside movement for the pair, thus a strong break above this resistance can take the pair higher to 100.25 (55 Weekly EMA). Initiate shorts in the pair around those levels for 70 pips. (Usd/Jpy: 98.80)
Rupee: Rupee rose yesterday to 51.25 a dollar but erased its gains to some extent on the back of weak stocks. The local shares which lost close to 1 % in the afternoon session brought weakness in the rupee. The rupee closed 11 paisa lower at 51.48/$ against its previous close. The overall bias for the rupee remains on the downside until it breaks the support of 50.80 and holds a possibility to retest 52 once again. (USD/INR: 51.40)
Swiss Franc: The Usd/Chf traded sideways yesterday moving within 100 pips testing the bids at 1.1800. The daily chart gives selling pressure but the 4-hourly and hourly charts are over-sold. On the upside immediate resistance comes in around 1.1830 where selling the Usd/Chf pair can be considered for intraday 50 - 60 pips. Downside can be restricted at 1.17 levels(21 daily EMA). Swiss retail sales data is due for the day. (Usd/Chf:1.1796).
Australian Dollar: Aussie witnessed low volumes as it traded in mere 60 pips turning from the lows of 0.6567 and closing at 0.6625. The daily and the 4-hourly chart is extremely over-bought with resistance coming in at 0.6656 (38.2% Retracement of the fall) where intraday shorts could be initiated for 60 pips. Immediate downside could be limited around 0.6500 (21 daily EMA). (Aud/Usd:0.6608).
Gold: Gold lost almost $12 yesterday taking resistance from the 21 Daily EMA at $924. Currently Gold is trading around $910 with immediate support coming in at the $904 (55 Daily EMA & 50% Retracement). Breaking of this can push Gold towards $881 (100 Daily EMA &61.8% Retracement). All the stochastic is indicating a downside bias for this Metal and selling at up-ticks ($918) could be considered. (Gold: $910.90)
Dollar index: DI is holding around the 87 levels currently with the stochastic in the over-sold region at 11.63%.
These views/ forecasts/ suggestions, though proffered 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.