Euro: Euro broke the trend-line resistance & 21 Daily EMA (1.2711) as it surged almost 250 pips from the lows of 1.2616 in yesterday€™s session. Currently trading at 1.2830 the daily charts are yet to reach the overbought region. Immediate resistance now comes in at 1.2940 (55 Daily EMA) where shorts could be incorporated for 70 € 80 pips. On the downside, 1.2630 is an important short term rising trendline support. (Eur/Usd:1.2833).
Pound: Cable fell to touch the bids at 1.3654, however recouped some of its losses as it closed higher at 1.3849 in yesterday€™s session. Currently Cable is trading around 1.3860 levels, with the 4-hourly charts in the overbought region. However, the other charts indicate slight upside with immediate resistance coming in at 1.4011 (55 4-hourly EMA). Retest of the previous lows of 1.35 is probable if Cable holds below 1.4130 (21 Daily EMA). Initiate shorts around 1.3980 for 70-80 pips. (Gbp/Usd: 1.3866)
Yen: The Usd/Jpy pair weakened almost 180 pips yesterday with the upside capped at 98.84. It further weakened in the early trade today and is trading around 96.30 levels. The daily charts are indicating further downside and a test of 95.14 (100 Daily EMA) is probable. Initiate shorts around 97.50 (cluster resistance of EMA€™s in hourly & 4-hourly) for 70-80 pips. Alternatively, longs in the pair around 95.20 can be initiated for 60-70 pips. (Usd/Jpy: 96.31)
Rupee: The local unit opened stronger (51.50) this morning after the Indian bourses were shut for the last 2 days due to the religious festival. Traders await the IIP data which is forecasted to contract further. The local stocks showed a gap-up opening after making a three and a half year low on Monday. The local unit can be picked up at every dip since the overall bias remains on the downside for rupee. (USD/INR: 51.61)
Swiss Franc: The Usd/Chf pair touched the highs of 1.1675 yesterday and gradually fell to the lows of 1.1520 (55 daily EMA). The daily & the hourly charts are neutral while the 4-hourly chart is oversold. Resistance comes in at 1.1615 (21 daily EMA) where selling the pair for 80 - 90 pips can be considered whereas the support continues to be at 1.1450 (100 daily EMA). The SNB rate decision is due for the day and is expected for a 0.25 bps cut. (Usd/Chf:1.1519)
Australian Dollar: Australian dollar gained 124 pips against the greenback on Wednesday from the lows of 0.6399 (21 4-hourly EMA). The daily chart has some room to reach the over-bought region eyeing the 55 daily resistance (0.6575) where going short can be considered in Aussie. On the downside cluster support of 0.6440 forms the first support.(Aud/Usd:0.6486).
Gold: Gold bagged $20 yesterday touching the highs of $912 (21 4-hourly EMA). The daily chart is flat while the hourly & 4-hourly charts are over-bought. Resistance continues to be around $925 - $929. A range-bound session can be expected in gold with support around $880 (100 Daily EMA). Going long on Gold around those levels for smaller gains can be considered. (Gold: $912.00)
Dollar index: DI took the horizontal trend-line resistance around 90 levels and has retraced to 87.50 levels (current levels) losing about 0.4% with the stochastic at 58.93%.
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.