• Home ::
• Technical ::
• Analysis Reports ::
• FX Thoughts for the Day

• Send
• Print
• Add To
• Rss

9833ad9a-21a4-48a9-afef-3b1069f40a36

0

0

FX Thoughts for the Day

Wed, Aug 13 2008, 11:16 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
---------------------

USD-CHF @ 1.0883/88.... Could consolidate between 1.0750-1.0925
---------------------------------------------
R: 1.0900 / 1.0920 / 1.0960 / 1.1000-25
S: 1.0875 / 1.0850-40 / 1.0800 / 1.0750-35
The Support at 1.08 has held in the day and resulted in a rise towards 1.0925 since then. The Resistance at 1.0925 is strong and could result in a dip once again.

Having said this, a slow consolidation could take place between 1.0750-1.0925 in the week ahead without breaking past either the Support or the Resistance.
Have a look at the 3-day chart at:
http://www.kshitij.com/graphgallery/chfcandle.shtml

 GBP-USD @ 1.8769/73.... Economy in Trouble!
----------------------------------------------
R: 1.8800 / 1.8840 / 1.8880-8900
S: 1.8740 / 1.8720-10 / 1.8675
Our target of 1.88 given in our report earlier in the day has already been met. This sharp decline of over 240 pips in the day is owing to the data that release that was below expectation. UK Claimant count change, UK Average Earnings Index and the Unemployment rate were all released in the day and resulted in the Cable being pressured.

There are some rumours in the market about the UK raising interest rates owing to the infaltion which is close to the double their comfort level at 2.2%. However, the market is still pressuring the pair downwards. With rising interest rates in an economy that is having negligible growth, the market isnt expected to react otherwise. From here, have a keen eye on the economic releases which are continuing to worsen over the last few months.

 
 AUD-USD @ 0.8698/0.8702.... 0.8670-60 important Support
------------------------------------------
R: 0.8705 / 0.8725-35 / 0.8765
S: 0.8630 / 0.8600 / 0.8575
As expected earlier in the day, the pair has moved higher towards 0.8740-45, and facing Resistance there has come down below 0.87 once again. From here, if the Support at 0.8670 holds, a further rise towards 0.88 could be seen over the week.

However, a break below 0.8670 would mean that the rise was just a spike up and could now be bearish once again to target levels below 0.86. The eventual target of this fall could be 0.85, which happens to be the 61.8% Retracement of the rise from 0.7674 (Aug-07) to 0.9851 (Jul-08).

Happy Trading!

Published on  Wed, Aug 13 2008, 12:03 GMT