FX Thoughts for the Day

USD-CHF @ 1.0911/15... Tight range between 1.0900-1.0950

R: 1.0940-50 / 1.0990 / 1.1000 / 1.1050-60
S: 1.0902-880 / 1.0850 / 1.080 / 1.0770-50

The pair has been facing selling pressure near 1.0940-30, however, it has a substantial amount of Support at 1.0900. A break of 1.09, if seen later in the day could attract some buying near 1.0872, the Max Low for the day.

Overall the pair remains in a trading range between 1.0900 and 1.0950 for today. It could continue to trade within this range over tomorrow as well, provided the economic data in the US session does not spring surprises- positive or negative.

GBP-USD @ 1.8361/65... Data priced in.

R: 1.8400 / 1.8475-85 / 1.8520-60
S: 1.8360 / 1.8310-8290 / 1.8265

Early in the day, we were anticipating the UK HPI m/m to be released lower than the concensus and as per expectation, it was. However, it seemed the whole market had discounted the data and the pair did not slip as much as we had expected it to. We exited the Short after realizing that the trade idea would not generate substantial return.

However, since then the pair has been volatile between 1.8325-1.8370, with a slight bias towards our target of 1.83. There is room for a fall towards 1.83, however, there are interim Supports at 1.8325.

Overall Cable continues in a downtrend, clear by the daily candles. Provided the US data for today-tomorrow is positive a drop in Cable will not surprise. Overall the pair could target 1.80, possibly even 1.75, in the coming months.

AUD-USD @ 0.8670/74... Near the Max High for the day.

R: 0.8675-90 / 0.8720 / 0.8750
S: 0.8650 / 0.8615-00 / 0.8575

Aussie has been trading near the upper end of the trading range for the day since the Tokyo session and could drop in the US session ahead. However, if the US GDP (Prelim) release disappoints, the pair could head higher towards 0.8760-80 over today and tomorrow.

The rise however is subject to the Resistance at 0.87 breaking.

To see the chart of AUD-USD click on:

http://www.kshitij.com/graphgallery/audma.shtml

To follow the US GDP Q2(prelim) Click on:

http://www.kshitij.com/fundamentals/funcharts/usgdp.shtml

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.