FX Thoughts for the Day

USD-CHF @ 1.0331/34...Trading in Resistance region 1.0305-35

R: 1.0305-35 / 1.0380 / 1.0420
S: 1.0270-55 / 1.0220 / 1.0180

Swiss has risen sharply mirroring the fall in Euro after a data release showed a decline in the German Investor confidence. It is now trading in the significant Resistance region 1.0305-35. A break above this Resistance region might see a rise towards 1.0420-50. However, if it holds we might see a downmove once again towards 1.0250-30 in the US session today.

Holding:

USD 10K Short at 1.0260, SL 1.0340, TP Open

Cable GBP-USD @ 1.6337/41...Holding Long

R: 1.6485-6500 / 1.6663
S: 1.6322-04 / 1.6239

The Cable has fallen as the Dollar has strengthened across most of the currencies after ZEW Economic Sentiment. The Cable first rose towards 1.6458 and has fallen thereafter. Further decline is likely to find Support near 1.6325. Having broken above the 1.6308-55 region on the upside yesterday, the pair has rendered itself bullish for a rise towards 1.6750 over the next few weeks. However, in this correction, the downside potential looks limited to 1.6250. The Projected Max High and Low for the day is at 1.6485 and 1.6304 respectively.

Holding:

GBP 10K at 1.6350, SL 1.6280, TP Open

Aussie AUD-USD @ 0.9202/06...Holding long

R: 0.9280 / 0.9330 / 0.9380
S: 0.9200-0.9180 / 0.9120-00 / 0.9070

Aussie has fallen during the day and is now trading near the significant Support region 0.9200-0.9180. A break below this Support region might pull it down towards 0.9120-00 in the US session today. However, we continue to remain bullish on the broader picture and might expect a bounce back from this Support region in the coming sessions.

Holding:

AUD 10K Long at 0.9215, SL 0.9165 (up from 0.9140), TP Open

As soon as the market trades 0.9280 bring the SL up to 0.9220.

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.