Technical Analysis Commentary

 @ibtimes
on January 02 2009 11:44 AM

Euro: Euro took the resistance of the 200 daily EMA to make Wednesday's high at 1.4146 levels from where it plunged down by 295 pips. Major charts are indicating a downside. On the downside support is seen at 1.3726 levels (100 daily EMA) which if broken then the pair can retest 1.3486 (55 daily EMA) levels (Eur/Usd: 1.3870).

Pound: Cable was volatile on 31st evening when it made an intraday high of 1.4698 levels from where it immediately fell to a newer low of 1.4354 levels. The daily and hourly charts are moving upwards and resistance is seen at 1.4850 levels (21 Daily & 100 4-hourly EMA) where shorts can be seen. (Gbp/Usd: 1.4659).

Yen: USD/JPY moved in a small range between mere 75 pips on Wednesday making the high of 90.89 levels. Resistance is seen at 91.40 levels (21 Daily EMA) which if held then the pair can retrace back to cluster support at 90.30 levels but if broken then the pair can touch 92.70 levels (200 4-hourly EMA). All the charts have corrected and are now moving upwards so cautious buys can be generated for smaller profits (Usd/Jpy: 91.17)

Rupee: The local unit opens with a weaker not in the new-year. The rupee eased a bit on 1stJanuary as the rise in oil prices raised the dollar demand. It closed slightly lower on Thursday at 48.76 against dollar due to the thin trading. It is expected that the bias for the rupee remains bearish since the current account deficit swelled to $12.54 bn and is can deepen further. (USD/INR: 48.43)

. Swiss Franc: The USD/CHF pair moved higher on Wednesday thus making a high of 1.0740 levels from the lows of 1.0540 levels. Further uptrend till 1.0840 levels (55 4-hourly EMA) can be expected from the current levels as the major charts are moving upwards. So intraday buys at 1.0660 (cluster support) can be considered. (Usd/Chf: 1.0747)

Australian Dollar: Australian Dollar gained 212 pips on Wednesday by touching the highs of 0.7072 levels. Major charts are currently moving downside for which going short around 0.70 levels can be considered for intraday 60-80 pips. On the downside the cluster support is seen at 0.6860 levels (200 hourly & 55 4-hourly EMA) (Aud/Usd-0.6950)

Gold: The yellow metal fell by $18 on 31st December 2008 by making a low of $856 levels. The daily charts are moving downward while the hourly and 4-hourly charts are moving upward. Cluster support comes in $866 levels and on the upside $900 levels (psychological) can be considered good. (Gold: $873.50)

Dollar index: DI has appreciated and is now trading at 82.15 levels with the stochastic moving further up being at 50.33%

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