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FX Thoughts for the Day

Kshitij Consultancy Service Team from Kshitij Consultancy Service at 01/27/10


USD-CHF @ 1.0453/58...Resistance region (1.0482-1.0502) held
R: 1.0482-1.0502 / 1.0548 / 1.0572
S: 1.0420 / 1.0380 / 1.0320

The Resistance mentioned earlier in 1.0482-1.0502 region was tested as expected during the day and Swiss has now come off from the day's high of 1.0503. Our view continue to remain the same on the pair. We expect the Resistance in 1.0482-1.0502 region to hold in the US session also. However, a break above 1.0502 might see a rise towards the 200-DMA (currently at 1.0548) which is a significant Resistance level to be watched for on the upside.

On the other hand, as the Resistance at 1.0482-1.0502 has held during the day, we might expect a test of the Support at 1.0420 in the US session today. A break below 1.0420 might pull it down towards 1.0380.
GBP-USD @ 1.6238/41...Might test the Resistance at 21-Week-MA (1.6269)
R: 1.6269 / 1.6301 / 1.6375
S: 1.6178-50 / 1.6100 / 1.6060-30

Cable has risen sharply during the day breaking above the 21-DMA (currently at 1.6156) and the 200-DMA (currently at 1.6196) and is now trading higher above 1.6200. The 21-Week-MA at 1.6269 and the 100-DMA at 1.6301 are the significant immediate Resistance levels seen on the upside. We may expect these Resistances to hold in the US session today. Note that the projected Max-High for the day is 1.6259. However, a strong break above 1.6300 might see a rise once again towards 1.6400.

On the downside the Support at 1.6100 is expected to hold in the US session today. A break below 1.6100 might pull it down towards the significant Support in 1.6060-30 region.

 AUD-USD @ 0.9004/07...Significant Resistance in 9040-75 region
R: 0.9040-75 / 0.9120 / 0.9135-85
S: 0.8940 / 0.8907 / 0.8870

The Support at 0.8940 mentioned in the morning edition was tested during the day as expected and Aussie has risen from the day's low of 0.8947. Much strength is not seen in its upmove and we expect the pair to remain pressured on the downside. As mentioned earlier 0.9040-75 is the significant Resistance region seen on the upside which we expect to hold in the US session today. Remember, this Resistance in 0.9040-75 region includes the 100-DMA (0.9041), the Trendline Resistance at 0.9068 and the 61.8% Fibonacci Fanline Resistance at 0.9075.

On the downside 0.8940 is the significant immediate Support seen on the downside. If the current downside pressure continues, a break below 0.8940 might pull it down towards 0.8870.

Happy Trading!

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