FX Thoughts for the Day

Kshitij Consultancy Service Team from Kshitij Consultancy Service at 01/21/10

USD-CHF @ 1.0475/78...Might test Resistance at 1.0520
R: 1.0500-20 / 1.0573 / 1.0635
S: 1.0420 / 1.0380 / 1.0325-00

Swiss is continuing to trade higher. As mentioned earlier we might see a rise towards 1.0520. Note that the projected Max-High for the day is 1.0517. We might expect a pull back from this Resistance at 1.0520 towards 1.0400-1.0380. However, a strong break above 1.0520 might test the 200-DMA (currently at 1.0573) in the coming sessions. We will have to wait and watch the market to get clear idea about further direction of move.
 
 
GBP-USD @ 1.6143/47...Testing 21-DMA
R: 1.6174 / 1.6273-98
S: 1.6114-6092 / 1.6044 / 1.5990

Cable has fallen further and sharper. It has broken below the Projected Max Low for the day already and is testing Support at 21-DMA (1.6114). Fall from thereon should find Support next near 1.60. Hence, buying near 1.60 may be attempted. There's trendline Support on the weekly candles at 1.60 and if this were to hold, the pair may start moving up once again. Else a break of 1.60 would lead to a test of 1.59 or back to the lower end of the long term range 1.58-1.68.

 
 AUD-USD @ 0.9090/95...Might test the significant Support levels at 0.9029/0.8990
R: 0.9160 / 0.9200-25 / 0.9280
S: 0.9060 / 0.9029 / 0.8990

Aussie has broken below 0.9100 once again and is now trading lower. Failure to sustain above 0.9100 has now increased the chances of further dip towards 0.9029 (the 61.8% Fibonacci Fan line Support) and 0.8990 (21-Week-MA) which are the two significant Support levels seen below 0.9100 mentioned earlier. A bounce back can be expected from these Support levels. Any sharp upmove is not looking likely now. However, a strong break above 0.9100 might see a rise towards 0.9200-25.

Happy Trading!