Vikram Murarka
Kshitij Consultancy Services
USD-CHF @ 0.9341/44...Targeting 0.9530 in the coming days/weeks
R: 0.9390 / 0.9460 / 0.9530
S: 0.9300-50 / 0.9180 / 0.9100-0.9080
Dollar-Swiss had a positive week as it strengthened along with the Euro thereby breaking its year long inverse relationship with the Euro. It found support on the dip near 0.9100-0.9080 which is its support on the monthly charts. Through the week it remained positive and was successful in breaking 0.9250-300 resistance as well. Further it remained strong and bounced on the test of 0.9300 which was held through the week. In the coming days we expect this bullish move to continue in the pair as it targets 0.9530. Intermediate Resistance is seen in 0.9400-50 region. On the down side 0.9300-250 should be the level to be watched which is expected to give good support and will be crucial in keeping the bullish view in tact.
Limit Buy Order
Buy USD 10K at 0.9200, SL 0.9140, TP 0.9280
GBP-USD @ 1.5864/67...Can dip lower
R: 1.5900 / 1.5950 / 1.6000
S: 1.5750-30 / 1.5675 / 1.5640
Cable had a very negative week as it fell sharply lower breaking below its key supports of 1.0600 and 1.5900. We were expecting 1.5900 to hold but it did not and the pair crashed lower. Now the pair is looking weak and can dip further towards its next significant supports of 1.5750-30 in the coming days. So the expectations are for the pair to be weak and to face resistance near 1.5900-50 on any rise if seen. We would now look to trade the pair from the short side as it has given a weekly close below 1.6000-5900. The monthly charts also looks weak now and a further dip towards 1.5640 also cannot be ruled out. Any rise from current levels is expected to face resistance near 1.5900-50 levels.
Trade Ideas
1) Sell if a turn around happens after a bounce back to 1.6000
AUD-USD @ 1.0510/13...Ranged/Mixed
R: 1.0620 / 1.0670 /
S: 1.0500 / 1.0415 / 1.0350
Aussie traded in the 1.0600-500 range for the whole week giving no clue of the eventual breakout direction. The bigger picture for Aussie does look promising and a break above 1.0620 will be very bullish which can take the pair towards 1.0750 and 1.0850 or even higher. But having said that we are not sure if this break will happen before a dip to 1.0400 is seen or not. Hence we are avoiding trading the pair currently. On the daily it does look that a dip to 1.0400 can be seen but we need to be cautious and should not jump the gun. It has good support on the down side near 1.0350 and 1.0150 which should be able to limit the losses if the range is broken on the down side.
Happy Trading!
The above views are based on the latest available information. Though the information sources are believed to be reliable, the information is not guaranteed for accuracy. While the views are proffered with the best of intentions, neither the author, nor the firm are liable for any losses that may occur as a result of any action based on the above. 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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