Euro: Euro has surged close to 750 pips in the last two sessions, with a movement of 320 pips in yesterday€™s session. Euro soared to the highs of 1.3737 and has retraced slightly to trade around 1.3650 levels currently. All the major stochastic has flattened in the overbought region. If Euro sustains to hold above 1.34 (21 4-hourly EMA) we could see the currency soaring to 1.38 (55 Weekly EMA). (Eur/Usd: 1.3454).
Pound: Cable comfortably broke past the 55 Daily EMA resistance at 1.44 and poised a high of 1.4595, moving almost 430 pips yesterday. The charts remain flat in the overbought region with immediate support coming at 1.44 (resistance turned support). Currently cable is taking 21 Hourly EMA support at 1.4444. If Cable continues to hold and trade above 1.43 (38.2% Retacement of the recent rise); a surge upto 1.48 and then upto 1.4950 could be seen. Initiate longs around 1.43 for 80-90 pips.(Gbp/Usd:1.4454)
Yen: The Usd/Jpy pair shed close to 300 pips in yesterday€™s session falling to a low of 93.54 taking the rising trendline support. Today, due to Japan market holiday, yen is moving in a thin range below the 55 Daily EMA. The daily and 4-hourly stochastic continue to show a downside with support coming at 94 levels. Breaking of this can turn the outlook quite bearish for the pair and may bring a test if 90 € levels. (Usd/Jpy: 94.65)
Rupee: Thursday saw rupee with its best performance in the last 4 months. It rose 1.8% closing the session at 50.38 a dollar with its overall gain of 3% against its alltime 52.20. The FII invested close to $200 mn in just the last 2 days. Inflation came out yesterday was at all time low of 0.44%. Rupee inched up this morning to 50.05/$ on expectation of more FII inflows. (USD/INR: 50.10)
Swiss Franc: The Usd/Chf pair further fell 300 pips and broke past the 200 daily EMA to touch the lows of 1.1157 (50% retracement of the rise in daily chart) yesterday. The daily and the 4-hourly charts are due for correction in the over-sold region. Short positions can be accumulated in the pair around 1.1270 (21 hourly EMA). Next target 1.0980 (61.8% Retracement). (Usd/Chf : 1.1224)
Australian Dollar: Aussie rose 220 pips yesterday from the lows of 0.6721 (100 daily EMA). The 4-hourly chart is giving a downside while the hourly chart is approaching the over-bought region. Initial support comes in at 0.6850 (21 hourly EMA) & then at 0.6775 (55 hourly EMA). However, on the upside resistance comes in at 0.7170 (200 daily EMA) levels. (Aud/Usd:0.6877)
Gold: Gold glittered to touch the highs of $961 yesterday from $925. Investors are investing in Gold since the past two days on a greater scale after the FED announced the buying of bonds from the market. The daily and hourly charts are over-bought but there is some room still left for correction. Buy Gold around $949 (21 Hourly EMA) for $10. (Gold: $955.80)
Dollar index: Dollar Index is trading weak around 83.67 currently. Support is at 83.50 breaking which will turn the outlook majorly bearish for the Dollar with next support around 81.00 levels. The stochastic has turned flat in the oversold region at 8.39%.
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.