FX Thoughts for the Day
USD-CHF @ 1.0536/40...Watch Resistance at 1.0570-0635
R: 1.0561-75 / 1.0610-35 / 1.0664
S: 1.0530 / 1.0502 / 1.0433-14
Dollar-Swiss has found good Support at 1.0502 on the 4-hour chart today. This is potentially bullish. At the same time, Resistances at 1.0575 and 1.0635 continue to hold. A breakout of the 1.0500-0630 range might set the trend for the coming week. If the Housing Starts are good tonight, the market might find the right reason to buy Dollars. A rise past 1.0635 can take the market up to 1.0660 and even 1.0720.
For a chart on the US Housing Starts, please click on http://www.kshitij.com/fundamentals/funcharts/ushsgstarts.shtml
A better than expected number (say in the region of 1.05 mln) might be very bullish for the Dollar.
GBP-USD @ 1.9488/92...Holding Long
R: 1.9510-24 / 1.9578 / 1.9608
S: 1.9470-50 / 1.9404 / 1.9363
Watch intra-day Support at 1.9470-50. If and while that holds, the Cable might move up towards 1.9575 and 1.9600. If the Support breaks, however, a fall towards 1.9400 and 1.9370 may be seen. At play is a duel between long-term Support at 1.9400 and medium term Resistance at 1.9500.
Holding:
- GBP 10K Long at 1.9492, SL 1.9436 (up from 1.9420), TP 1.9580
AUD-USD @ 0.9494/98...Sell some
R: 0.9490-9500-9510 / 0.9545
S: 0.9410-00 / 0.9355-45 / 0.9325
The Aussie has moved up to near the top of a sideways range of 0.93-95 that might hold over the next couple of days. Since we has suggested selling near 0.95 and buying near 0.93 in the morning today, we are going to try it ourselves.
Market Trade (at time of writing):
- Sell AUD 10K at current level, SL 0.9555, TP 0.9400
Kshitij Consultancy Service
http://www.fxthoughts.com
Legal disclaimer and risk disclosure
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.
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