FX Thoughts for the Day

USD-CHF @ 1.0894/96...Testing important Resistance

R: 1.0928 / 1.0959 / 1.1090-104
S: 1.0866 / 1.0835-02 / 1.0763

Dollar-Swiss has risen towards 1.0894 and is facing Resistance from the 200-MA (1.0892) on the 4-hourly. The view continues to be the same that till the pair is ranged between 1.0763-1.0895, we can sell rallied and buy dips. A break past this would target 1.1000 on the upside. A break below the range looks distant as of now.

Holding:

• USD 10K Short at 1.0880, SL 1.0910, TP 1.0790
• USD 10K Short at 1.0866, SL 1.0910, TP 1.0840

Cable GBP-USD @ 1.6436/42...Narrow band

R: 1.6484 / 1.6560 / 1.6640
S: 1.6438-00 / 1.6340-22 / 1.6265-58

Cable has traded in a very narrow range between 1.6405-1.6519 during the day. The pair is likely to find Support for today near the 55-week MA at 1.6340. Till this holds, and till the 21-DMA (1.6265) holds, the pair could be ranged between 1.6265-1.6560 over the next few days. Else, the level of 1.6830 on the upside and 1.5850 on the downside are likely t provide strong Resistance and Support respectively.

The overall uptrend in Cable is likely to be maintained once it is able to break the Resistance near 1.6550-1.6600 region. Despite Crude having fallen, the pair has been holding firmly above 1.64. It will have to be seen if the relationship with crude continues to play strong. To see the chart of Cable, click on: http://www.kshitij.com/graphgallery/gbpcandle.shtml#candle

Aussie AUD-USD @ 0.7942/44...May dip towards 0.7876

R: 0.7980-98 / 0.8016-34 / 0.8119
S: 0.7897-76 / 0.7849 / 0.7813

Aussie has fallen below the 0.80 region and is next targeting 0.7876 (the 200-SMA on the 4-hourly). The range will now have to be increased to 0.7876-0.8200 over the next many days. A fall below 0.80 has lent confirmation that the 21-DMA could be acting as the fulcrum as the pair see-saws along this point. If this view holds good, one may want to play the range by buying on a dip towards 0.7876 and sell rallies. To see the chart of Aussie, click on: http://www.kshitij.com/graphgallery/audcandle.shtml#candle

Kshitij Consultancy Service
http://www.fxthoughts.com

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These views/ forecasts/ suggestions, though proferred with the best of intentions, are based on our reading of the market at the time of writing. They are subject to change without notice.Though the information sources are believed to be reliable, the information is not guaranteed for accuracy. Those acting in the market on the basis of these are themselves responsibly for any profits or losses that might occur, without recourse to us. World financial markets, and especially the Foreign Exchange markets, are inherently risky and it is assumed that those who trade these markets are fully aware of the risk of real loss involved.