FX Thoughts for the Day

USD-CHF @ 0.9321/24...Sell rallies
R: 0.9360 / 0.9400
S: 0.9300 / 0.9250 / 0.9120

The pair could not hold on to its gains and gave up ground to break below 0.9300 but found support at 0.9285 and has bounced back and can extend its gains towards 0.9350 and further to 0.9400 which would be good level to short the pair with a tight stop. It is in a downtrend on the broader picture and was trading in the 0.9250-9300 range which seems to be extending towards 0.9350. The downside to 0.9120 does not seem likely today and for next week only a strong break below 0.9250 can make it a slide lower.

Limit Sell Order
Sell USD 10K at 0.9415, SL 0.9460, TP 0.9320
GBP-USD @ 1.6259/62...Bullish
R: 1.6270-75 / 1.6380 /
S: 1.6200 / 1.6160 / 1.6080

The pair rose sharply above 1.6200 extending its gains above 1.6270 and breaking its resistance and the previous high. It is likely that cable would continue its broader uptrend and move ahead towards 1.6380 which is trend line resistance on the weekly charts. The down side now can be limited to 1.6160 where it is expected to find buyers and floors seems to be set their and the momentum seems set to increase on the

 AUD-USD @ 1.0493/96...Can rise further
R: 1.0500-15 / 1.0565
S: 1.0410 / 1.0370 / 1.0300

The pair moved up towards its shoulder of the H&S pattern on the four hour charts and in fact exceeded it, pair is facing resistance here and can start retreating from these levels towards its 1.0410 and further to 1.0370 (55 EMA on the daily charts) but a further down side is only possible on a strong break blow its 55EMA (1.0370) which is proving to be a good support for the pair. At the same time a strong rise past 1.0500-15 can take the pair towards its trend line resistance on the weekly charts at 1.0580-600 continuing its broader bullish uptrend.

We got stopped out of the Short position entered at 1.0455 losing 60 pips.

Happy Trading!

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