FX Thoughts for the Day
Kshitij Consultancy Service Team from Kshitij Consultancy Service at 02/03/10
EURO, JAP YEN and EURO-YEN
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Our comments on Dollar-Swiss, Sterling Pound and Australian Dollar are given below
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USD-CHF @ 1.0518/22...Support in 1.0500-1.0480 region
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R: 1.0555-70 / 1.0600 / 1.0699
S: 1.0500-1.0480 / 1.0450-30 / 1.0350
Swiss has fallen breaking below the Support at 1.0550 and tested the Support in 1.0500-1.0480 region. We expect this Support region continue to hold in the US session also. However, a break below 1.0480 might see 1.0450-30 on the downside. Note that the projected Max-Low for the day is 1.0471. A bounce from this Support region (1.0500-1.0480) might take it up once again towards 1.06 in the coming sessions. As mentioned earlier a break above 1.06 might see a rise towards 1.0700-30 in the coming days. Remember 1.0699 is the the 38.2% retracement level of the fall from 1.1965 (09-Mar-09) to 0.9916 (23-Nov-09).
Limit Buy Order:
Buy USD 10K at 1.0485, SL 1.0415, TP 1.0700
GBP-USD @ 1.5976/80...Good Resistance 1.6074-78
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R: 1.6076-85 / 1.6113 / 1.6166
S: 1.5982-59 / 1.5919 / 1.5833-06
The Cable has fallen after rising towards 1.6069 after facing Resistance from the 8-DMA mentioned in the morning. If the 8-DMA Resistance continues to hold, we might see the pair consolidate between the 55-week MA (1.5756) and the 8-DMA (1.6074) over the next few days. The region near 1.6074-78 is a strong Resistance zone which houses the 8-DMA, 8-week MA and the fault line Support on the weekly candles. Hence this is likely to hold and bring the pair down to test the Dec '09 low of 1.5833 over today/tomorrow. The Projected Max High and Low for the day is at 1.6113 and 1.5919 respectively.
AUD-USD @ 0.8895/98...Watch Resistance at the 8-DMA (0.8932)
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R: 0.8932 / 0.9000-30 / 0.9053
S: 0.8860-50 / 0.8800-0.8780 / 0.8742
After breaking above 0.8900 and recording a high of 0.8916, Aussie has fallen slightly and is now trading just below 0.8900. As mentioned earlier, the 8-DMA (currently at 0.8932) is the significant immediate Resistance to be watched for on the upside. A strong break above this Resistance might increase the chances of further rise towards 0.9000-30 in the coming sessions. While below the 8-DMA (0.8932) Resistance, we might see a downmove once again towards 0.8800-0.8780.
Happy Trading!
