FX Thoughts for the Day

Daily Forex Technicals | Written by Kshitij Consultancy Services | Jul 24 08 12:05 GMT |

USD-CHF @ 1.0387/91.... Tight trading range. R: 1.0400 / 1.0450 / 1.0500 / 1.0550 S: 1.0350 / 1.0320-300 / 1.0270-250 The pair has remained relatively calm over the day and could possibly continue to remain so over the US session. It currently trades between 1.0350-1.0400 and till it does, it is difficult to point towards the direction of the breakout. For now, a dip towards 1.0300 seems more favored than a rise towards 1.0500. The possibilities of a rise towards 1.0550 will come under a doubt if the Support at 1.0320-300 breaks. GBP-USD @ 1.9840/45.... Tested 1.9830 in the day R: 2.0050-80 / 2.0150 S: 2.0000 / 1.9900 / 1.9850 / 1.9800-780 A sharp fall in Cable has brought it close to the important Support at 1.9850 in the day. This fall could be attributed to the lower than expected UK Retail Sales. The release was expected at –2.5% whereas the actuals were lower at –3.9%. For the day, Support is seen at 1.9850-30, on the trendline joining the lows of 1.9409 (13-Jun) and 1.9671 (9-Jul) on the daily chart. Till the Support at 1.9850-30 continues to hold expect a bounce from here with a target of 1.9900. Overall the bullish bias seems to be threatened now. However, there is a wide upward channel formation between 1.9830 and 2.0250, which could lead to an eventual rise in the pair. A break below 1.9830 could result in a fall to test stronger Support at 1.9750. AUD-USD @ 0.9600/04.... Could rise towards 0.9650 R: 0.9650-60 / 0.9700-25 S: 0.9610 / 0.9570-40 / 0.9500 / 0.9460 The pair has managed to rise above 0.9600 in the day. The overall bullishness in the pair is expected to lead to a test of 0.9700 over today and tomorrow. For now, Aussie trades close to the important Support at 0.9610 and as long as it holds a test of 0.9650 seems highly likely. If however, 0.9610 breaks, expect interim Support at 0.9580 before an eventual test of 0.9553, the Max Low for the day. Holding: Long 10K AUD at 0.9605, SL 0.9530 (down from 0.9540), TP 0.9640 (down from 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.