Market Outlook - BNP PARIBAS - Investment Services India

Chart 2: USD/CHF – Breaking Higher through Major Support
USDCHF has broken
sharply higher through
down trendline
resistance that had
been in place over the
1.17
1.15
1.13
course of the past 1.11
1.1020
year.
1.0935
1.09
Pivotal resistance in
the 1.0505/65 area is
1.07
being approached. A 1.05 1.0595
break above here will
1.0565
1.0450
1.0505
open upside potential 1.03
towards the 1.1020
1.01
area.
0.9920
0.99
09-Jun-09 06-Aug-09 05-Oct-09 02-Dec-09
Source: BNP Paribas
GBPUSD is keeping
the pressure on the
near-term up trendline
support.
A break below here
will trigger a decline
towards the bottom
end of the long-term
trading range, where
major support is
placed at 1.5720/10
level.
A break below 1.5710
confirms that the longterm
outlook is bearish
Source: BNP Paribas
USDJPY pullback
remains corrective and
is now nearing an end.
Chart 3: GBP/USD – Bottom End of the Range to be Tested
1.71
1.69
1.67
1.65
1.63
1.61
1.59
1.57
1.55
1.53
1.51
1.49
1.47
1.45
1.6745
10-Jun-09
1.7042
07-Aug-09
1.6742
06-Oct-09
Chart 4: USD/JPY – Pullback is Just a Correction
99
99.70
97.78
1.6880
1.5710 1.5830
03-Dec-09
1.6457
1.0135
27-Jan-10
28-Jan-10
A rebound from initial
support at the 88.95
level provides an initial
positive signal, but a
break back above the
91.85 level is needed
to confirm a corrective
bottom, triggered a
renewed bullish signal.
We anticipate a
resumption of the
recovery.
97
95
93
91
89
87
85
93.85
10-Jun-09
91.75
07-Aug-09
92.32
87.98
84.81
06-Oct-09 03-Dec-09
88.95
93.76
28-Jan-10
Source: BNP Paribas
Ian Stannard 29 January 2010
Market Mover, Non-Objective Research Section
52
www.GlobalMarkets.bnpparibas.com