Forex Daily Analysis - Thursday, Oct 4th

By Rcpl Forex

Currency Daily Update

Cable's fall continued to the extent of 2.0280 levels yesterday where it gained support from the 50% Retracement (as seen in the above daily chart). Unable to sustain at higher levels; cable is currently trading around 2.03 levels with the daily & weekly stochastic still overbought. The immediate support for cable is around 2.0260 levels (21 Days EMA & 61.8% Retracement). Breaking of this level on the downside can further push cable to the levels of 2.0200 (200 Days EMA in the 4-hrly Chart).The key focus of the day is the BOE interest rate decision at 16:30 IST today.

STRATEGY: Look for opportunities to short at higher levels around 2.0330 with a target that Cable could retrace upto 2.0250 -260 levels and stop above 2.0450 levels.

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