FX Thoughts for the Day
USD-CHF @ 1.2068/72...Support at 1.2060 being tested
R: 1.2125 / 1.2307-31 / 1.2375
S: 1.2060-34 / 1.1942-27 / 1.1905-1.1881
As mentioned in the morning, the pair found Support at 1.2062 and is continuously testing the 8-day MA. If this level breaks, which looks vulnerable given the sharp downwards move the pair has made over the last couple of hours, a dip towards 1.1940 is possible. Or if the Support continues to hold, 1.23 or even 1.24 cannot be ruled out in the near term.
On the bigger frame, we see a long term consolidation range between 1.18 and 1.26 for the next few months. It could come out of the range if it is able to trade lower than the Long Term Support at 1.18 for significant time on the downside.
GBP-USD @ 1.5027/31...Free fall
R: 1.5069 / 1.5119 / 1.5180
S: 1.4851 / 1.4791 / 1.4685
Cable witnessed a free fall as fundamentals played in and broke all Supports that came in its way. It continues to slide further just as we write and could possibly test the Support at 1.4851 sooner rather than later.
On the bigger frame, Pound could probably find some Support at the current levels (1.48-1.50) where a long term trendline Support exists. To see the chart of Pound, click on: http://www.kshitij.com/graphgallery/gbpma.shtml
AUD-USD @ 0.6422/25...Trading weak
R: 0.6438-62 / 0.6497-524 / 0.6531-44
S: 0.6134-07 / 0.6007
The pair has traded lower and is trading below the 8-day MA. It was able to break free of the range (where it was bound by the 21-day MA above and 13-day MA below) on the downside. A dip from hereon, could make the pair test the Support at 0.6134 over a few sessions. This would curb its journey towards the higher end of the long term consolidation range of 0.60-0.68 after which it could make fresh attempts to rise further.
We expect the buyers would support the pair at every dip towards 0.61. Till this happens, there are good chances of the pair re-test the recent highs near 0.68 over a period of time.
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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