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FX Thoughts for the Day

Mon, Aug 11 2008, 12:17 GMT
by Kshitij Consultancy Service Team

Kshitij Consultancy Service

EURO, JAP YEN and EURO-YEN
---------------------------
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 @ 1.0793/97.... Could test 1.0850
---------------------------------------------
R: 1.0850 / 1.0875 / 1.0909
S: 1.0800 / 1.0750 / 1.0735
After dipping slightly during the day to find Support at 1.0735-48, the pair is once again heading towards the Resistance at 1.0850. The Resistance seems strong and might not break in the day, also because the projected Max High for the day is at 1.0856.

For now, the rise from here could be stronger as the Support at 1.0735 has held after being tested earlier in the day. If 1.0735-50 continues to hold, a break of 1.0850 may be seen in the days to come.

Overall the market direction is bullish and expected to face a major Resistance at 1.1050 over the week. To see the chart click on:
http://www.kshitij.com/graphgallery/chfcandle.shtml

 GBP-USD @ 1.9192/96... Vulnerable for further dips
----------------------------------------------------
R: 1.9225 / 1.9250-9 / 1.9275
S: 1.9150 / 1.9125 / 1.9075
As per expectation a rise in Cable was seen during the day, as the selling pressure over the last week has led the pair being oversold and a bounce seemed quiet likely.

For now, as long as the market trades above 1.9200-9180, there remains a possibility of a re-test of 1.9250-60, the Max High for the day. The pair remains bearish overall, with the possible target of 1.88, if the Support at 1.91 breaks.
To see the chart of Cable click on:
http://www.kshitij.com/graphgallery/gbpcandle.shtml

 
 
AUD-USD @ 0.8904/08.... Sell rallies
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R: 0.8952 / 0.8980 / 0.9025
S: 0.8867 / 0.8835 / 0.8780
After dipping to test 0.8834 early in the day, the pair had risen slightly. However, after facing Resistance at 0.8952, it has once again come lower to trade at 0.89 currently.

Note that RBA monetary policy statement this morning has not been able to impact the pair negatively despite lowering of the growth estimates and also hinting at rate cuts in the near future. The basic reason behind this movement is that a major correction was seen over the last week.

The overall trend remains bearish and could head towards 0.8650 over the latter part of the week. The strategy should remain to sell rallies.

Happy Trading!
 

Published on  Mon, Aug 11 2008, 12:36 GMT