Euro: Euro fell almost 250 pips in yesterday€™s session to test the bids of 1.3431. The Daily stochastic is completely overbought and is showing a downside while the 4-hourly charts are oversold. A small retracement upto 1.3300 (55 4-hourly EMA) could be witnessed where going long on Euro could be considered for 100 pips and with stops below 1.3230 (100 Daily EMA). Immediate cluster resistance comes at 1.3870 (100 Weekly EMA & 61.8% Retracement) which could hold temporarily. (Eur/Usd:1.3480).
Pound: Cable extended its gains from the lows of 1.4555 to 1.4778 before closing the session at 1.4716. Currently cable is trading around 1.4680 with immediate support of 1.4620 (55 Hourly EMA) and then at 1.4445 (55 Daily EMA). The bias remains on the upside upto 1.4955 resistance above 1.4445. The 4-hourly and hourly charts are showing slight selling pressure, thus going long with strict stops could be considered at dips. Alternatively selling around 1.49 for 80-100 pips could be considered. (Gbp/Usd: 1.4682)
Yen: The Usd/Jpy pair surged to 98.55 levels from the lows of 96.92 before ending the session a little lower at 98.11. Currently the pair is trading sideways at 97.50 after taking the 98.28 (200 Daily EMA) resistance. The 4-hourly charts are showing a downside with cluster support at 97.00 (Converging EMA€™s in 4-hourly & hourly charts) where longs could be considered for 70-80 pips. (Usd/Jpy: 97.62)
Rupee: The local unit rose as much as 50.19 a dollar in yesterday's morning session amid dollar weakness against the majors. It ended weaker at 50.70/71 on the back of month end dollar demand and weakening Euro against dollar. However, the sustained dollar inflows capped the rupee fall. This morning it marginally breached the 51-mark on the back of dollar demand by oil refineries. Immediate resistance shall now be around 51.11 - 51.23 (USD/INR: 50.96)
Swiss Franc: The Usd/Chf pair gained 116 pips yesterday from the lows of 1.1207 sustaining below the 200 daily EMA (1.1341). The hourly & 4-hourly chart indicates further upside in the pair while the daily chart is completely over-sold region. The above resistance if broken can take the pair first to 1.1390 (100 weekly EMA) and then to 1.1440(21 daily EMA). (Usd/Chf:1.1290)
Australian Dollar: Aussie rose to 0.7093 yesterday before testing the bids of 0.6933 yesterday. The pair is holding above the 21 4-hourly EMA (0.6938) which continues to be the support along with the 4-hourly chart being flat in the over-sold region. The daily chart is completely over-bought and resistance is seen around 0.70 levels. (Aud/Usd:0.6960).
Gold: Gold loses glitter as it shed $27 from the strong resistance of $943 and investors losing hope of alternative investment in gold. The daily and hourly charts continue to give selling bias in gold heading towards the immediate support of $910 (55 daily EMA). Resistance comes in at $931 (21 daily EMA) where Gold short can be considered for $8-10. Alternatively buying Gold around $900 could be considered. (Gold: $926.80)
Dollar index: DI is hovering near the resistance of 84.61 currently, although the stochastic is correcting in the over-sold region at 16.32%. A break of this resistance can lead DI to retest 87 mark.
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.