Daily Technical Analysis Monday Sep 06, 2010 Currency Trend Exp. Range Support Spot Resistance Currency Short Medium S3 S2 S1 R1 R2 R3 USDINR Neutral Neutral 46.40-46.60 46.35 46.40 46.46 46.48 46.57 46.60 46.65 EUR Up Neutral 1.2800-1.2970 1.2780 1.2850 1.2880 1.2908 1.2920 1.2970 1.3050 GBP Up Neutral 1.5380-1.5550 1.5330 1.5400 1.5440 1.5469 1.5500 1.5550 1.5650 USDJPY Neutral Neutral 83.00-85.00 83.30 83.50 83.80 84.25 84.55 84.81 85.30 USDCHF Up Neutral 1.0050-1.0300 1.0064 1.0090 1.0107 1.0140 1.0163 1.0192 1.0238 Dollar weakened across the board boosting a risk appetite in the global economy, after a positive release of most awaited Non-farm payroll data. A holiday in US and Canada would put a ceiling on the movement in the currencies. Today, in the absence of any major economic data release, currencies and equity indices are expected to trade on the carry forward effect of Friday’s data. USDINR: The pair is trading in a range of 7-paisa since opening stronger at 46.54. USDINR is expected to take support at 46.47, which if held the pair might go till 46.60, as all major stochastic are in oversold region which suggests corrective rally can be seen in the pair. EURUSD: EURUSD surged by 90 pips to touch a high of 1.2897 and is currently trading at 1.2900. An up move in the pair is expected to face strong resistance around 1.2960-1.2980(50% retracement of the fall from 1.3334 to 1.2586), where one can initiate sell position for the target 1.2850 (100 Daily EMA). GBPUSD: Cable rose to a high of 1.5467 after touching a low of 1.5389. As long as it is trading below 1.5505 (100 4-hourly & 21 daily EMA), bias remains on the down side till 1.5430 (55 daily EMA). Hourly & 4-hourly stochastic also favoring a sell. USDJPY: A rally till 85.22 in Friday’s session was short-lived and the pair closed with a doji formation at 84.41. Currently pair is taking support at 84.10 (61.8% retracement of the rise from 83.66 to 85.22), as a result, 21 daily EMA at 84.95 level can be witnessed in today’s session. USDCHF: Swiss franc depreciated by 120 pips to touch a low of 1.0239, before closing at 1.0171. The currency has appreciated over a period of time however; the daily stochastic is indicating a “buy” in the pair, where an up move till 1.0270 (21 daily EMA) is likely. On the down side the pair is expected to hold support at 1.0120 (Horizontal line). DXY: Dollar weakened against the basket of currencies and currently, trading at 81.94; above its key support level of 81.80 Further weakness in dollar till 81.60 (55 Weekly EMA). However, a rally till 82.30 (200 Daily EMA) can be expected if DXY manages to stay above 81.80.