FXstreet.com

Daily Technical Analysis

8

0

EUR: Possibly attempt tiny longs at 1.3525; stop below 1.3400

Fri, Oct 10 2008, 07:09 GMT
by Nicole Elliott

Mizuho Corporate Bank


EUR

Comment: Still hovering nervously above a new recent low at 1.3444 in what is a potential C leg of an A, B, C-type correction where C is 0.6% of A, yet attempts at rallying have been pathetic so far. The Euro is oversold and bearish momentum its strongest ever, and Eastern European currencies are hard-hit this week.

Strategy: Possibly attempt tiny longs at 1.3525; stop below 1.3400. First target 1.3700, maybe 1.3900.


EUR/JPY

Comment: Dropping to a new recent low at 132.80, a third downside probe since hitting 135.00. One-month at-the-money implied volatility at 28.50% is at a new record underlining the extent to which cheap Yen has been used for years to invest in higher yielding assets everywhere. There is a small chance of a short squeeze very late today or over the weekend.

Strategy: Possibly attempt tiny longs at 133.75; stop/reverse below 132.70 for 130.60. Cover longs between 138.00 and 140.00 and wait.


GBP

Comment: Another day, another new recent low at 1.6781 as Cable suffers its biggest annual decline since 1992 (and it’s only October). It is oversold and bearish momentum is stronger than it has been in years. Leave things alone if you can as there is a chance of a nasty surprise over the weekend.

Strategy: For those with more money than sense: possibly attempt tiny longs at 1.6825; stop below 1.6740. Short term target 1.7400, maybe 1.7650.


JPY

Comment: The biggest sell-off this year and one of the biggest in a long time, yet we feel prices should try and hold above March’s low at 95.77 for several weeks. In fact starting this morning the US dollar should try and base between 98.00 and ahead of 96.00. The USD is as oversold as it was in March but bearish momentum not so. Volatility might increase even further were prices to become more of a two-way street.

Strategy: The very brave might want to attempt the tiniest of longs at 99.00; stop/reverse below 98.40 for 98.00, then 97.70 and possibly 96.00. Cover longs ahead of 101.50 and stand aside if possible.

Published on  Fri, Oct 10 2008, 07:14 GMT


Archive

Mizuho Corporate Bank  | 1-3-3, Marunouchi, Chiyoda-ku, Tokyo 100-8210
http://www.mizuho-cb.co.uk | Nicole.Elliot@mhcb.co.uk

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.

Related reports

Fundamental Currencies Comments - Currencies ahead of U.S. data by ecPulse.com
Tue, Nov 24 2009, 11:34 GMT

Market Session Recaps - London Session by FOREX.com
Tue, Nov 24 2009, 11:33 GMT

Daily FX Report - The AUD/JPY fell to 81.85 and the NZD/JPY fell to 64.80 by Varengold Wertpapierhandelsbank AG
Tue, Nov 24 2009, 11:04 GMT

European Market Update - German IFO survey hits 15 month highs by TradeTheNews.com
Tue, Nov 24 2009, 11:00 GMT

Daily Trading Forecast - USD Still Waltzes to the Same Tune by Swiss e Trade AG
Tue, Nov 24 2009, 10:58 GMT

eurusd, eurjpy, gbpusd, usdjpy

View All

Related content


Interested in forex trading? forex brokerage firms!


ACM Advanced Currency Markets SA
Contact the broker/FDM
Open a demo account
FX Solutions LLC
Contact the broker/FDM
Open a demo account
IG Markets
Contact the broker/FDM
Open a demo account		Forex Capital Markets, LLC (FXCM)
Contact the broker/FDM
Open a demo account		FXDD
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.

©2009 "FXstreet.com. The Forex Market" All Rights Reserved.