FX Thoughts for the Day

Kshitij Consultancy Service Team from Kshitij Consultancy Service at 01/14/10

 USD-CHF @ 1.0215/18...Ranged with bearish bias
R: 1.0220 / 1.0270 / 1.0320
S: 1.0130 / 1.0080 / 1.0050-30

Swiss is continuing to trade within the range and is now heading towards 1.0220, the upper end of the range which is also the 55-DMA. A breakout above the upper end of the range might take it up towards 1.0270. However, if 1.0220 holds, we might see a downmove once again towards 1.0130, the lower end of the range. On the downside a break below 1.0130 might pull it down towards 1.0050-30. The outlook is ranged as of now with bearish bias.

Limit Sell Order:
Sell USD 10K at 1.0260, SL 1.0340, TP Open
 

GBP-USD @ 1.6252/55...Little movement during the day
R: 1.6335-48 / 1.6423-39
S: 1.6234-28 / 1.6186 / 1.6152

The Cable has been continuing to test Resistance near 1.63. There has not been much movement in the pair. The view that we had expressed in the morning continues to hold. The same is being reiterated below:

"Till this Resistance which is at 1.6307-58 for today continues to hold, the pair may come down over the next few days. If so, we would look for the 55-week MA (1.5687). The Resistance region of 1.6307-58 houses the 13-week MA, 55-DMA, 100-DMA and the trendline Resistance on the daily candles. To see the trendline Resistance, click on: http://www.kshitij.com/graphgallery/gbpcandle.shtml#candle

But if in case it has formed a bottom at 1.5833 around 2-3 weeks back, it may continue to move up. On the upside, the flattening of 13-week MA (1.6334), 55-DMA (1.6358) and 100-DMA (1.6307) may allow the pair to move up towards the upper end of the long term sideways range of 1.57-1.68."

The Projected Max High and Low for the day is at 1.6423 and 1.6152 respectively.

 
 AUD-USD @ 0.9284/87...Holding Long
R: 0.9325 / 0.9380-0.9410 / 0.9485
S: 0.9265-40 / 0.9200-0.9180 / 0.9130

Though Aussie is continuing to trade higher, a strong break above the Resistance at 0.9325 was not seen during the day. If it continues to trade lower, we might see a downmove once again towards the Support region 0.9200-0.9180. However, the broader picture continue to remain bullish and a break above the immediate Resistance at 0.9325 might see a rise towards the previous high of 0.9405 (16-Nov-09) in the coming sessions.

Holding:
AUD 10K Long at 0.9225, SL 0.9195 (Up from 0.9175), TP Open.
As soon as the market trades 0.9330 bring trail SL to 0.9240

Limit Buy Order:
Buy AUD 10K at 0.9215, SL 0.9165, TP Open

Happy Trading!