USD-CHF @ 1.0649/50...At Support zone
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R: 1.0726 / 1.0767 / 1.0793-1.0808
S: 1.0629 / 1.0609-1.0596 / 1.0418
USD-CHF took Resistance from the 1st level of Resistance mentioned at 1.0739-47 and made a High of 1.0732. The pair subsequently dropped to the 2nd level of Support indicated in the morning edition and made a Low of 1.0657 and is still headed south. This is the lower end of the Range in which USD-CHF has traded for the past 10 weeks. Supports of the Range extend till 1.0596 which will continue to work unless the pair turns bearish enough to break down from the Range, in which case 1.0418 will be the next major Support. The movement on the upside is also full of Resistances as mentioned above.


GBP-USD @ 1.6839/42...Strong Resistance at 1.6940
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R: 1.6917-40 / 1.7025-50 / 1.7180
S: 1.6800 / 1.6682-56 / 1.6609
Cable has risen sharply during the day breaking past an important Resistance at 1.6820 and looks now headed for a rise towards 1.6940 which is a channel Resistance (the channel being formed by the joining the highs of 11-Jun '09 at 1.6621 and 30-Jun '09 at 1.6746 for the top and the Lows of 8-Jun '09 at 1.5801 and 8-Jul '09 at 1.5984 for the bottom). However, our Projected Max High for the day works out at 1.6917. This Resistance region of 1.6917-40 is likely to hold as of now. But if the current momentum continues unabated, it may even target 1.7025-50. Immediate Support is available at 1.6800. The Projected Max Low for the day is at 1.6656. Our preference is for either a sideways move or a downside move towards the Projected Max Low for the day for the US session as the Resistance at 1.6940 looks strong enough.

In the medium term, if the Resistance at 1.7050 is broken, the pair may become very bullish thus targetting 1.75 over the next several days. A host of Supports near 1.63 including the 55-DMA would possibly provide sufficient Support going forward.

We were stopped out of the Short entered at 1.6810 losing 50 pips.

 
AUD-USD @ 0.8413/15...Trending higher
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R: 0.8410-19 / 0.8458 / 0.8491-0.8500
S: 0.8355-40 / 0.8286 / 0.8157
Aussie traded in a narrow range today. The pair made a High at 0.8409 (the first Resistance zone, mentioned in the previous edition) and has retraced slightly since then. In case of continuation of rally, Resistance at 0.8420 is intermediate while Resistance at 0.8491-0.8500 (which is the 61.8% retracement of the huge downfall from a High of 0.9848 on 13/07/08 to a Low-cum-Support at 0.6327 on 05/10/08) will try to stab the bulls completely. The Resistance-turned-Support at 0.8355 is a strong one on the downside.