Forex Technical Update
Euro: Euro's rally continued to the extent of 1.4348 levels (made today) recording fresh new highs against dollar. Euro is currently trading around 1.43 levels; further upside is still in favour to the extent of 1.4350 levels. The overall outlook remains bullish for Euro as long as it holds above 1.4140 levels (61.8% Retracement of the recent rise). However, the 4-hrly and daily stochastic is overbought in nature and some correction can be anticipated. Look for opportunities to initiate longs around 1.4270-80 levels (38.2% Retracement) for 50 pips. Furthermore, shorts can be cautiously initiated around 1.4360-80 levels with a target of 50 pips. (eur/usd – 1.4307).
Pound: Cable surged upto the extent of 2.0523, breaking the consolidation on the upside; witnessing a move of almost 120 pips in Friday's trading session. Currently, Cable is trading around 2.0490 levels and further rally is still in favour as long as it holds above 2.0377 levels (21 Days EMA in the daily chart & 61.8% Retracement of the recent rise). The 4-hourly and daily stochastics is in the overbought region. Look for opportunities to initiate shorts around 2.0550-70 levels with a target of 60 pips. (gbp/usd - 2.0492).
Yen: Yen strengthened almost 400 pips in the last week edging to 113.92 levels (reaching our expected medium term target of 113.50). Yen is currently trading around 114.00 levels, facing an immediate resistance around 115.00 levels (38.2% Retracement of the recent fall). The overall outlook remains bullish for Yen below 116.10 levels (61.8% Retracement and 100 Days EMA in the 4-hrly chart), however, the 4-hourly and daily stochastic is extremely oversold and slight upside to the extent of 115.00 levels can be witnessed. Medium term target - 112.00 (usd/jpy - 114.04).
Rupee: Rupee market continues to remain volatile. After closing at 39.73 levels on Friday, the spot Rupee opened 12 Paisa weak at 39.85 today and made an intraday low at 39.93. Although the medium term target remains 39.00, spikes to the extent of 40.30-40 levels could be seen. Exporters should look for such opportunities to cover their exposures. Medium Term Target - Spikes around 40.50; targeting 39.00 (Friday's closing 39.73).
Swiss Franc: Swissy strengthened strongly to the extent of 1.1656 in the last trading session; experiencing a high volatility last week. Currently, the pair is trading around the 1.1640 levels after touching an intraday low at 1.16 levels (reaching our mentioned medium term target of 1.16) and is facing immediate resistance at 1.1710 levels (38.2% Retracement). Although, the 4-hrly and daily stochastic is oversold, the overall outlook remains bullish for Swissy below the 1.1820 levels (55 Days EMA in the daily chart). Medium term outlook remains 1.15. (usd/chf-1.1682)
Gold: Gold strengthened to make new highs against dollar as it edged to $770.8 in the last trading session. Currently, Gold is consolidating below the highs of $770 and has made an intraday low of $752.8. The daily and weekly charts are overbought further correction could be anticipated. However, the overall outlook remains bullish on Gold. Avoid initiating positions at these levels.(Gold-$760.5)
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