Forex Technical Update

Euro: Euro was range bound on Monday due to lack of any significant data as it traded within 90 pips and closed slightly weaker at 1.5343 compared to its opening levels of 1.5363 after Trichet's comment on currency market moves. Its daily chart shows an overbought position, while the 4-hrly and hourly charts show strong buying pressure. Strong support is seen at the levels of 1.5335 (21 4-hourly EMA). Longs can be initiated at those levels for intraday gain of 40 pips. (Eur/Usd-1.5363).

Pound: The Cable touched a 3-month high against the dollar at 2.0219 on the back of strong PPI data before finally closing at 2.0092. The daily chart is in overbought position while the 4-hrly and Hourly are close to oversold region. UK House price index is to be released today and it will dictate the further movement in Pound and 1.9955 levels (55 4-Hrly & 200 Daily EMA) could be seen. (Gbp/Usd- 2.0057).

Yen: Increased risk aversion and continuous declines in global equity markets boosted the yen as the pair touched an 8 year low of 101.38 which is the lowest level since 2000. The pair will continue to remain under pressure as the equity markets globally have not yet recovered. All of its major stochastics are giving bearish signals, while the daily and 4-hrly is still in the oversold territory. The immediate resistance is at 101.83 (21 hrly EMA) and break of this level will push the pair up to 102.21 ( 55 hrly EMA). (Usd/Jpy- 101.72).

Rupee : The spot rupee opened at 40.55 and fell to 40.71 due to weak equity markets and aggressive buying of dollars by oil companies to book forward dollars but recovered towards the end of the day along with the equity to close higher at 40.48/49 to a dollar. Medium Term Traget - 40.90. (USD/INR - 40.59)

Swiss Franc: USD/CHF pair traded in a range of 85 pips and dipped to a level of 1.0171 and later retraced to close stronger at 1.0192. All daily and 4-Hrly charts are highly oversold. Immediate resistance is seen at the levels of 1.0197 (21 hourly EMA) breaking of which could push it higher to the levels of 1.0224 (55 hourly EMA). (Usd/Chf- 1.0191) .

Australian Dollar: The Australian dollar continued to dip on the back of risk aversion as it fell by 150 pips from the days high and touched an intraday low of 0.9159. It touched the levels of 0.9047 in the early morning session which brought the 4-Hourly & daily stochastics close to oversold territory. Strong support comes in at 0.9142 levels (200 4-Hrly EMA). Look for opportunities to long at those levels for an intraday profit of 40 pips. (aud/usd - 0.9184).

Gold: Gold was very volatile yesterday, it lost $12 from its opening levels of $972.90 and touched an intraday low of $960.90. The daily charts are giving bearish signals while the 4-hrly still shows some buying pressure. The immediate support is at $968.00 (55 4-hrly EMA) and a correction upto that level is expected. (Gold - $971.75).

Dollar index: Dollar index has increased for the first time in few trading sessions to a level of 73.030. The immediate resistance is seen at 73.40. (8-Hrly moving average).

RCPL FOREX

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