•  
  • New York 08:23
  • London 12:23
  • Barcelona 13:23
  • Tokyo 21:23
  • Sydney 23:23

  • SignUp | Login

Daily Technical Analysis

EUR: A sustained break above 1.2850 later today

Mon, Nov 20 2006, 08:11 GMT
by Nicole Elliott

Mizuho Corporate Bank  |  View company's profile


Vote:

0

0

EUR

Comment: Trapped in a narrow range between the mid-point and the upper edge of the trading band of the last six months. A sustained break above 1.2850 later today should set off a squeeze to increasingly important resistance at 1.2900.

Strategy: Buy at 1.2840, adding to 1.2790; stop below 1.2745. Short term target 1.2880/1.2900.

EUR/JPY

Comment: Consolidating neatly at record highs. The cross is no longer overbought and momentum remains bullish. Implied volatility is at record lows. Sooner rather than later this pair should break higher.

Strategy: Attempt small longs on a dip to 151.10/150.90; stop well below 150.50. Short term target 151.45 and 155.00 medium term.

GBP

Comment: Bouncing nicely from the Ichimoku ‘cloud’ and 26-day average, which happen to lie in the middle of the broad band of the last three months. With a little luck prices will hold above 1.8900 this morning, setting up for a short squeeze above 1.9000. Note that Cable is not overbought and that momentum is just bullish. Open interest has slumped since the 10th of this month.

Strategy: Buy at 1.8945, adding to 1.8900; stop below 1.8830. Short term target 1.9050 then 1.9150.

JPY

Comment: Still stuck in a narrow range, inside a fat Ichimoku ‘cloud’. Momentum is neutral and so is the RSI. Hopefully this holiday-shortened week will see price action get a little more interesting, with downside pressure building the longer we hold below the 118.20 area. For today expect messy work roughly between 117.20 and 118.20, noting that weekly trendline support lies at 116.75.

Strategy: Sell at 117.85/118.20; stop above 118.60. Short term target 117.25/117.00.

Published on  Mon, Nov 20 2006, 08:26 GMT


Mizuho Corporate Bank http://www.mizuho-cb.co.uk | Nicole.Elliot@mhcb.co.uk

Archive


Legal disclaimer and risk disclosure

The information contained in this page is based on or derived from information generally available to the public from sources believed to be reliable. No representation or warranty is made or implied that it is accurate or complete. Any opinions expressed in this paper are subject to change without notice. This page has been prepared solely for information purposes and if so decided, for private circulation and does not constitute any solicitation to buy or sell any instrument, or to engage in any trading strategy.
Vote:

0

0


Interested in forex trading? forex brokerage firms!


FX Solutions LLC
Contact the broker/FDM
Open a demo account
FOREX.com
Contact the broker/FDM
Open a demo account
City Credit Capital (UK) Ltd
Contact the broker/FDM
Open a demo account		Deutsche Bank
Contact the broker/FDM
Open a demo account		Capital Market Services UK Ltd
Contact the broker/FDM
Open a demo account

GET CASH BACK FOR YOUR TRADES!   Learn more about the Pip Rebate Program

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.

Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

©2010 "FXstreet.com. The Forex Market" All Rights Reserved.