Euro: Euro breached the 1.30-mark, strengthening more than 200 pips touching the high of 1.3070 yesterday. Currently Euro is holding above the 1.2945 (55 Daily EMA) with the daily charts getting flat in the overbought region. Holding above this support can take Euro to 1.3180 (100 Daily EMA & 38.2% Retracement of the fall). Shorts could be initiated there for 70 € 80 pips gain. (Eur/Usd: 1.3005).
Pound: Cable€™s rally was restricted around 1.4230 (200 4-hourly EMA & falling trendline resistance) witnessing an upmove of 320 pips. However, in the US session despite disappointing TIC flow data, Cable retraced and closed around 1.4070 levels. The hourly charts are overbought while the daily and 4-hourly charts continues to indicate an upside. Immediate support comes around 1.4080 (trendline & 100 4-hourly EMA). On the upside break above 1.4220 resistance could push cable to 1.4425 (55 Daily EMA). Shorts could be initiated there for 100 € 120 pips. (Gbp/Usd: 1.4130)
Yen: The Usd/Jpy pair witnessed a thin sideways movement of about 65 pips in yesterday€™s session. Currently the major charts are indicating an upside in the pair with the pair hovering around 98.40 levels (200 daily EMA and 38.2% retracement). 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: Rally in Equities and the fund inflows helped the rupee to gain yesterday. The rupee gained 11 paisa as it closed the session at 51.40/$ after making an intraday low of 51.31/$. The weakening dollar against its major rivals was also one of the reasons for the gain in rupee. It touched the lows of 51.25/$ this morning on the back of strong global equities. However, keeping aside this correction the overall trend for the rupee still seems bearish. (USD/INR: 51.34)
Swiss Franc: The Usd/Chf traded sideways yesterday moving within 100 pips testing the bids at 1.1803. The daily and 4-hourly charts are neutral while the weekly chart continues to move upward. A range-bound session can be observed in the pair for which going long around 1.18 levels can be considered for intraday 80 pips. (Usd/Chf:1.1851)
Australian Dollar: Aussie further gained 100 pips yesterday touching the highs of 0.6636 (expected resistance). The daily chart is completely over-bought and the 4-hourly and hourly are indicating a downside. Shorts can be initiated in Aussie around the resistance of 0.6636 for a short intraday gain. Decisive break of this resistance can take Aussie higher to 0.6770 (50% Retracement of the fall). Downside could be limited around 0.6485 (21 daily EMA). (Aud/Usd:0.6611).
Gold: Gold traded sideways yesterday holding below the important resistance of $929. It made an intraday low of $915. The daily and the 4-hourly charts are flat currently with strong resistance coming in around $926 (21 daily & 100 4-hourly EMA). On the downside strong support comes in around $900. Sell gold around $926 for $10. (Gold: $920.80)
Dollar index: DI has weakened slightly and is trading below 87 levels currently with the stochastic approaching the over-sold region at 16.51%.
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.