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FX Thoughts for the Day

Kshitij Consultancy Service Team from Kshitij Consultancy Service at 02/08/10


USD-CHF @ 1.0733/37...Immediate Support at 1.07
R: 1.0790-1.0810 / 1.0880 / 1.0940
S: 1.0700 / 1.0630-00 / 1.0540

Swiss continued to trade below the Resistance in 1.0790-1.0810 region and the Support at 1.07 was tested during the day as expected. It has risen slightly from the low of 1.07. As mentioned earlier, a break below 1.07 might see a downmove towards 10630-00 in the US session today. We might see a bounce back from 1.0630-00 once again towards 1.0800 in the coming sessions/days.

On the other hand, if the immediate Support at 1.07 continue to hold, we may see a break above the Resistance in 1.0790-1.0810 region and see a rise towards 1.0880 (21-Month-MA). Remember, the 50% retracement level of the fall from 1.1965 (09-Mar-09) to 0.9916 (23-Nov-09) is at 1.0940.

Limit Buy Order:
Buy USD 10K at 1.0620, SL 1.0530. TP 1.0880
GBP-USD @ 1.5573/77...Important Support zone 1.5580-5500
R: 1.5619 / 1.5667-89 / 1.5763
S: 1.5510-5485 / 1.5251

The Cable rose towards 1.5625 during the day and has fallen back once again as attempts to break above have been met with strong selling. However, on the downside we fell that the Support at 1.5580-5500 mentioned in the morning would continue to prop the pair from a further fall at the moment. If it is able to find a surface here, the pair may rise towards 1.5750 over the course of the week. This does not however negate the bearish view on Cable which is signalled by the double top formation on the weekly candles. The Projected Max High and Low for the day is at 1.5689 and 1.5485 respectively.

 AUD-USD @ 0.8674/78...Might test the 200-DMA once again
R: 0.8700 / 0.8740 / 0.8870
S: 0.8584 / 0.8510 / 0.8470

AUssie failed in its attempt made to break and move up further above 0.8700 and is trading in between 0.8650-0.8700. As no significant move on either side was not seen during the day, our view remains the same on the pair.

The 8-DMA (0.8766) is the significant Resistance to be watched for on the upside which we expect to hold in the US session today if a strong upmove breaking above 0.8700 is seen. Failure to see a strong break above 0.87 during the day is retaining the downside pressure and as mentioned earlier we might expect a break below the 200-DMA (0.8583) and see a downmove towards 0.8470-50 in the coming days/weeks.

Limit Sell Order:
Sell AUD 10K @ 0.8720, SL 0.8810, TP 0.8480

Happy Trading!

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