FX Thoughts for the Day

Kshitij Consultancy Service Team from Kshitij Consultancy Service at 11/19/09

Our comments on Dollar-Swiss, Sterling Pound and Australian Dollar are given below
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USD-CHF @ 1.0184/87...Holding Short
R: 1.0200 / 1.0247 / 1.0280
S: 1.0100 / 1.0050-30 / 0.9980

Swiss has risen during the day breaking above the Resistance at 1.0170 mentioned earlier. However it is continuing to trade below 1.0200. As mentioned earlier, a strong break above 1.0200 was not seen for the last couple of weeks. A strong break above 1.0200 might see a rise towards the 55-DMA (currently at 1.0247) which is the significant Resistance to be watched for on the upside. On the other hand if it fails to see a strong break above 1.0200, we might see a downmove toward 1.0100-0080 in the US session today.

Holding
USD 10K Short at 1.0160, SL 1.0235, TP Open

GBP-USD @ 1.6623/27...Breaks important Support zone
R: 1.6680-6703 / 1.6766
S: 1.6580-60 / 1.6400

Cable has broken below the crucial Support zone mentioned in the morning. Unless this turns out to be just a false break (which would be confiremd on a test of 1.6580, the Cable can fall towards 1.6400 over the next few days and may be even lower towards the lower end of a medium term channel at 1.6200. We have been stopped out of the Long entered at 1.6680 losing 60 pips in the process.

 
AUD-USD @ 0.9169/72...Holding Long
R: 0.9220 / 0.9280 / 0.9330
S: 0.9160 / 0.9120-00 / 0.9060

Aussie continues to trade lower and has just broken below the Support at 0.9170. Immediate Support is seen at 0.9160 (200-MA on the 4-hr chart). If it holds, we might expect a bounce back towards 0.9230-50 in the US session today. However, a break below this Support at 0.9160 (200-MA on the 4-hr chart) might see further dip towards 0.9120-00.

Holding:
AUD 10K Long at 0.9180, SL 0.9090, TP Open
As soon as the market trades 0.9230, bring the SL up to 0.9140
 

Happy Trading!