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FX Thoughts for the Day

Kshitij Consultancy Service Team from Kshitij Consultancy Service at 02/11/10


USD-CHF @ 1.0674/78...Support in 1.0630-00 region holding.
R: 1.0700-20 / 1.0750 / 1.0800-10
S: 1.0630-00 / 1.0550-30 / 1.0495

The Support in 1.0630-00 region held during the day and Swiss has risen once again. Immediate Resistance is seen in 1.0700-20 region which is holding since Tuesday's US session and keeping the pair ranged between 1.06-0720. With the Support region 1.0630-00 looking strong, we might expeect a break above this Resistance region (1.0700-20) in the US session today and see a rise towards 1.08 in the coming sessions.

On the downside, we expect the Support in 1.0630-00 region continue to hold. However, a break below 1.06 might see 1.0550 on the downside.
GBP-USD @ 1.5642/46...Holding Long
R: 1.5716 / 1.5823-35
S: 1.5550 / 1.5500 / 1.5375

The Cable fell towards 1.5559 during the day and has risen thereafter. The Support at 1.5550 has held and if it continues to hold, the pair may be headed upwards within the short term consolidation range between 1.55-1.58 over the next few days. If, however, it is not able to sustain above the Support at 1.5550, the pair may extend its fall towards 1.5500-5480. This (1.5500-5480) is a long term channel Support which may not break easily. If 1.5550 holds, we may see the pair rise towards 1.5640 during the US session and possibly 1.5700 over the next couple of sessions.

GBP 10K Long at 1.5560, SL 1.5570 (up from 1.5550), TP Open
As soon as market trades 1.5650, trail SL to 1.5590.

 AUD-USD @ 0.8886/89...Significant Resistance in 0.8950-55 region
R: 0.8900 / 0.8950-55 / 0.9005
S: 0.8860-50 / 0.8780 / 0.8735

Aussie, although is continuing to trade higher, a break above 0.8900 was not seen during the day. A break above 0.8900 might see a rise towards the Resistance in 0.8950-95 region. This is a very significant Resistance region to be watched for on the upside and this region includes the 21-DMA (currently at 0.8952) and the 50% Retracement level of the fall from 0.9327 (14-Jan-10) to 0.8578 (05-Feb-10) which is at 0.8953. We might expect a pull back from this Resistance region. However, a strong break above 0.8955 might see further rise towards 0.9000-50 in the coming sessions.

Happy Trading!

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