Euro: Euro traded sideways in the last session, however, witnessing a 210-pip movement with the gains being capped at 1.3726 before closing at 1.3681. Today, after a gap-up opening of 75 pips, Euro remains in a thin trade with the 4-hourly stochastic showing an upside and the daily charts extremely overbought. Immediate resistance comes around 1.3867 (100 Weekly EMA & 61.8% Retracement of the fall). Intraday shorts for 70-80 pips gain could be initiated there. Eurozone Trade Balance is awaited. (Eur/Usd: 1.3660).
Pound: Cable traded sideways on Friday with the upside being capped at 1.4587 and plunging to 1.4394 low. Currently cable is trading around 1.45 levels with the hourly and 4-hourly stochastic still showing an upmove and the daily charts getting flat in the overbought region. Immediate support comes at 1.4424 (55 Daily EMA) breaking which Cable can test the cluster support at 1.4345. A bounce back from those levels could be witnessed. Await for trend confirmation before initiating a trade. (Gbp/Usd:1.4220)
Yen: The Usd/Jpy pair surged almost 200 pips in the last trading session from the bids of 94.14 to 96.25 highs. After opening with a gap-down today, the pair is hovering near the 21 4-hourly EMA around 96.10 levels. The daily stochastic is showing an upward bias for the pair while the 4-hourly is highly overbought. Support for the pair continues to be around 94.40 levels (upward rising trendline) where longs could be initiated for 70-80 pips. (Usd/Jpy: 96.08)
Rupee: The rupee ended at 50.66/68 per dollar, 1.3% below an intraday peak of 50.02 hit in the opening deals and below Thursday's close of 50.36/38. A descent amount of inflows was observed in the Indian market which inturn helped the rupee. The 1-month offshore NDF was quoting at 51.09/19 still weaker than the onshore market. The cues from the Asian as well as the Indian stocks would direct the local unit. (USD/INR: 50.52)
Swiss Franc: The Usd/Chf pair moved within 128 pips on Friday holding strong above the support of 1.1160 (50% retracement of the rise in the daily chart). Strong resistance comes in around 1.1320 (55 Hourly EMA & 200 Daily EMA) and then around 1.1388 levels (21 4-hourly EMA) with the 4-hourly chart indicating a downside. Shorts can be accumulated around these resistances for intraday 90 pips profit. (Usd/Chf:1.1234).
Australian Dollar: Aussie traded sideways on Friday moving merely in 80 pips and closed the session at 0.6868. The daily and the hourly charts are over-bought although the 4-hourly chart has some room to reach the over-bought region. Currently it is holding below the 0.70 mark which if broken can lead the pair to 0.72(200 Monthly EMA) levels. Longs can be considered in Aussie around 0.6910 levels (21 hourly EMA). (Aud/Usd- 0.6970).
Gold: Gold traded within $20 on Friday touching the high of $966. The daily chart is nearing the over-bought region while the 4-hourly chart is neutral near the over-sold region. Immediate support comes in around $943 (50% retracement of the fall in the daily chart & 21 4-hourly EMA) where Gold can be bought for $10 gain. (Gold: $950.80)
Dollar index: DI has breached the 84 mark and is trading at 83.80 with the stochastic completely over-sold at 10.94. Some weakness is still expected in the dollar index in near term as long as 84.60 resistance holds. On the downside, support comes at 83.50 breaking which will turn the outlook majorly bearish for the Dollar with next support around 81.00 levels. The stochastic is flat in the oversold region at 10.60%