FX Thoughts for the Day

Daily Forex Technicals | Written by Kshitij Consultancy Services | Jul 21 08 12:28 GMT |

USD-CHF @ 1.0223/27.... Could dip again. R: 1.0250-60 / 1.0300 / 1.0350 S: 1.0170 / 1.0150 / 1.0110 / 1.0060 There has not been a huge move in the day so far, neither is one expected in the day ahead. Japan celebrated Marine Day and no US releases later in the day, keep the market calm for now. A dip to 1.0185 was witnessed after a rise to 1.0238 faced Resistance at the 21-day SMA at 1.0244. For now, the pair trades close to the Resistance at 1.0240-45, on the trendline joining the highs of 1.0356 (9-Jul), 1.0340 (10-Jul) and 1.0250 (18-Jul) on the 4-hourly chart. Also at 1.0245 is the 21-day SMA. A rise beyond this could target 1.0300. However, the more likely scenario is that the resistance holds in the day leading to another test of 1.0170 if not 1.0150. To see the chart click on: http://kshitij.com/graphgallery/chfcandle.shtml http://kshitij.com/graphgallery/chfma.shtml GBP-USD @ 1.9964/68... Direction remains unclear. R: 1.9980 / 2.0000 / 2.0050 S: 1.9900 / 1.9870-50 / 1.9800 A dip to 1.9907 has once again attracted buying interest and resulted in a rise from there to 1.9980. However, strong Resistance near 1.9980 has resulted in a small dip there after. For now expect a rise to test 1.9980-2.00 in the day once again. A rise beyond may target 2.0034, the Max High of the day. If however, 1.9980 continues to hold, expect a dip to 1.9900-9850 in the US session. To see the chart click on http://kshitij.com/graphgallery/gbpcandle.shtml AUD-USD @ 0.9753/57... Overall bullish R: 0.9800-25 / 0.9850-67 / 0.9900 S: 0.9740 / 0.9700 / 0.9660 / 0.9600 The rally in the pair faced strong Resistance at 0.9772 twice over in the day. However, it continues to trade above 0.9750-30 Support. While it trades above this Support region expect the possibility of a further rise towards 0.9850 and 0.9900 over the week. For the day a rise beyond 0.9810 might not be on the cards. A break below 0.9730 is not likely either, but if seen could result in a dip towards stronger Support at 0.9680. This however, is not expected to change the overall bullish outlook, which targets 0.9900 over the week, unless a close below 0.9680 is seen today. To see the chart click on: http://kshitij.com/graphgallery/audcandle.shtml To follow economic releases like the AU PPI QoQ click on: http://kshitij.com/fundamentals/calendar/calendar.shtml The thin liquidity and no big directional moves keep us out of trading for a while. Kshitij Consultancy Service http://www.fxthoughts.com Legal disclaimer and risk disclosure These views/ forecasts/ suggestions, though proferred with the best of intentions, are based on our reading of the market at the time of writing. They are subject to change without notice.Though the information sources are believed to be reliable, the information is not guaranteed for accuracy. Those acting in the market on the basis of these are themselves responsibly for any profits or losses that might occur, without recourse to us. 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.