FX Thoughts for the Day

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FX Thoughts for the Day

Mon, Jul 14 2008, 11:16 GMT
by Kshitij Consultancy Service Team

Kshitij Consultancy Service


EURO, JAP YEN and EURO-YEN
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Read our current comments and trade recommendations on EUR-USD, USD-JPY and EUR-JPY by registering at
http://www.kshitij.com/fxthoughts/fxthoughts.shtml#register

Our comments on Dollar-Swiss, Sterling Pound and Australian Dollar are given below
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USD-CHF @ 1.0241/5.... Could face selling near 1.0275
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R: 1.0250-65 / 1.0275 / 1.0300 / 1.0350
S: 1.0210 / 1.0150-130 / 1.0100
The pair has had a nice little run up towards the Resistance at 1.0250 in the day. The projected Max High for the day is 1.0275, and could be seen later in the day. We took profit on one half of our long at 1.0204 at 1.0240, keeping the other half. To see the “At a Glance” signal sheet which indicates the projected Max Highs and Max Lows for the Day click on:
http://www.kshitij.com/fxthoughts/aag.shtml

For the week ahead expect a re-test of stronger Support at 1.0110-00. This is a strong Support and not expected to break with ease. A bounce from 1.01 could be seen targeting 1.0300 on the upside. For the day now, one can expect some selling near 1.0275 could pressurize the pair to end the day near lower levels. To have a look at the chart click on:
http://www.kshitij.com/graphgallery/chfcandle.shtml

Limit Buy Order:
Buy 10K USD at 1.0210, SL 1.0165, TP 1.0265. Remove the order, if the market trades 1.0265 before the execution of the order.

Holding:
USD 10K long at 1.0204, SL 1.0130, TP 1.0265
 

GBP-USD @ 1.9863/67... Continues to remain mixed.
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R: 1.9875-800 / 1.9950 / 2.0000
S: 1.9800 / 1.9750 / 1.9700
A dip towards 1.9813 has been supported by the 21-SMA on both the daily and the 4-hourly charts. However, the upside seems to be well protected by the Resistance at 1.9920-25. Cable could remain calm in the US session today trading between 1.9810-1.9915.

Overall the picture remains mixed and could test the Resistance at 2.00 or the Support at 1.9640, both of which seem equally likely. Interim Support will be provided by 1.9800 and 1.9725 while 1.9925 and 1.9965–75 would act as interim Resistance before the above-mentioned targets are achieved.

 
 AUD-USD @ 0.9686/90... Important Resistance at 0.9735-48
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R: 0.9700 / 0.9744-48
S: 0.9675-60 / 0.9600 / 0.9560-50
Aussie tested 0.9719 on Friday after almost 25 years, the last time it traded above 0.9700 was in 1983. However, as earlier thought the break beyond 0.9700 has not bought a huge upside momentum along. It has in fact bought it close to a very important Resistance at 0.9735-48 region on the monthly chart. Connecting the trendline are the highs of 0.6426 (Feb-00) and 0.8010 (Feb-04) currently trading near 0.9738. For now a test of the Resistance level mentioned above could be possible, however not much upside beyond seems likely or possible. To see the chart on AUD_USD click on: http://www.kshitij.com/graphgallery/audcandle.shtml

For the day, Resistance could be felt at 0.9700 and any other rise above till 0.9670 holds on the downside. A break below 0.9670 could lead to a dip towards 0.9625 over the US session today.


Happy Trading!

Published on  Mon, Jul 14 2008, 11:40 GMT

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