FX Thoughts for the Day

Daily Forex Technicals | Written by Kshitij Consultancy Services | Jul 23 08 12:02 GMT |

USD-CHF @ 1.0329/33.... Could test 1.0550 if 1.0380 breaks. R: 1.0350-700 / 1.0400 / 1.0450 S: 1.0320-300 / 1.0270-250 / 1.0200-190 A rise in the pair has taken the pair beyond the Resistance at 1.0350. For now there is an important trendline Resistance at 1.0350-370. To see the Resistance click on: http://www.kshitij.com/graphgallery/chfcandle.shtml With a moderate Support at 1.0300 and at 1.0270-50, a further rise from here could mean targeting 1.0400 and towards 1.0550 if 1.040 is broken. This rally could take a couple of weeks to formulate. With an increased possibility of interest rate hike in the US after a statement by Fed's Plosser hinted towards inflationary concerns yesterday, the Dollar has had a sharp rise. Along with this, Crude has also cooled off and now is below $126 and could test the Support at 123 sooner than later. With all global concerns cooling off the Dollar is shining for the time being. GBP-USD @ 2.0013/18... Sharp rise after the BOE Mins R: 2.0050-80 / 2.0150 S: 2.0000 / 1.9900 / 1.9850 / 1.9800-780 A surprising rally in the pair has once again pushed Cable beyond 2.00. For now it remains to be seeen if this rise is also short lived or Cable manages to build on this rise to test the levels of 2.0200. If Cable manages to sustain above 2.00 in the day, expect a further rise over the week. In the day a rise much beyond 2.0035, the Max High for the day might not be seen. The BoE mins released in the day revealed a three-way split within the committee, 7-1-1 votes in favour of holding rates. AUD-USD @ 0.9655/58... 0.9600 could be tested R: 0.9725 / 0.9775 / 0.9800-25 S: 0.9625 / 0.9600-580 / 0.9550-40 Aussie has broken below the 0.9650 in the day and hit a low of 0.9630. For now, if it continues to trade below 0.9660, a dip to 0.9600 could be seen. However, the Projected Max Low for the day is at 0.9653, a break below which has already been seen. A further fall, if seen, is expected to find Support at 0.9600-580, which could be a decent level to enter long. Limit Buy Order: Buy 0.9605, SL 0.9540, TP 0.9675 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.