Euro: Euro traded in a sideways range of 130 pips, soaring to 1.2810 and loosing steam it closed the session at 1.2733. Currently Euro is trading just below the short term trendline support around 1.2740 levels with the charts indicating a downside. If Euro holds below the trend-line support, further decline upto 1.2512 (previous low) could be witnessed. Initiate shorts cautiously around 1.2760 for intraday 60-70 pips. (Eur/Usd: 1.2744).

Pound: Cable reached the highs of 1.4383 in yesterday’s session taking the cluster EMA resistance in the 4-hourly chart. Technically, the hourly charts indicate slight upside with immediate resistance coming in at 1.4345 (21 4-hourly EMA & 100 hourly EMA). However, the bias remains weak for Sterling as the daily & 4-hourly charts signal a downside. The support remains at 1.41 (horizontal trendline). Break of this support can drag cable to 1.38. Initiate shorts around 1.4330 for 70-80 pips gain. (Gbp/Usd: 1.4290).

Yen: The Usd/Jpy pair surged higher to 98.50 levels yesterday (50% Retracement of the fall in Daily charts) & retraced to 97.30 levels. The hourly stochastic shows little upside for the pair, however, the 4-hourly is indicating a downside. The daily stochastic is also overbought. If 98.50 (200 Daily EMA) is broken and held this would confirm that the pair is headed for 100.55 (55 Weekly EMA) else we may witness a pull back upto 96.00 levels. Cautious shorts can be initiated around 98.40 levels for 70 pips. (Usd/Jpy: 97.75)

Rupee: Rupee has touched an all time low as it went past the 50.65 mark (Dec ’08 low) in the early trade today. The local unit ended almost 1 percent weak yesterday than its previous close as there was rising demand for dollar by the oil importers at the back of rising oil prices (at one months’ high of $44). The sentiment was further aggravated as the one-month NDF market quoted weaker rupee rates. The bias continues to remain bearish and a test of 51.00 and beyond is probable. (USD/INR: 50.66).

Swiss Franc: The Usd/Chf pair traded in 130 pips gaining support at the 21 Daily EMA at 1.1595 and closing the session at 1.1646. The 4-hourly and daily charts have turned mid-way and are indicating an upside for the pair. The immediate support remains at 1.16 (21 Daily EMA) and then at 1.1500 (55 Daily EMA). Initiate longs there for 80 – 100 pips. (Usd/Chf: 1.1645)

Australian Dollar: Aussie traded sideways within 90 pips in yesterday’s session capping the gain at 0.6550. Currently Aussie is trading below the 21 Daily EMA with the daily & 4-hourly charts showing a downside. On the upside, resistance comes in at 0.6511 (21 Daily EMA & 38.2% Retracement resistance) where shorts could be initiated for 80 pips. (Aud/Usd : 0.6460)

Gold: Gold as expected fell another $25 against the greenback yesterday touching the bids of $932 breaking past the 21 daily EMA. The Daily charts are reaching the oversold region with immediate support coming in around $917 – $920 (200 4-hourly EMA & 38.2% of the rise in daily charts). Longs can be initiated there for $15 -$20 gain. (Gold: $938.00)

Dollar index: Dollar Index is trading in a sideways consolidation and is currently around 87.88 levels. The stochastic is overbought poised at 83.13 levels.

About the author

India Forex Research Team. India Forex Advisors Pvt Ltd 23, 1st floor | Great Western Building | Lion Gate | Fort, Mumbai - 23. P: +91 (0) 22 6526 2886 | M: +91 9769 2775 38 | F: +91 (0) 22 66390484 | admin@indaforex.in | www.indiaforex.in Disclaimer: 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.

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