FX Thoughts for the Day

Daily Forex Technicals | Written by Kshitij Consultancy Services | Jul 29 08 12:58 GMT |

USD-CHF @ 1.0380/85.... Headed towards 1.04. R: 1.0400 / 1.0450 / 1.0500 / 1.0550 S: 1.0300 / 1.0270-250 / 1.0200 The sudden dollar bullishness has resulted in the pair changing direction mid-way towards Support at 1.0300, something we were expecting earlier in the day. However, from here the rally is expected to be checked at 1.0400. A break above would be very bullish to the overall momentum which is currently neutral. GBP-USD @ 1.9873/77.... Could rise further R: 1.9975 / 2.00 / 2.0050-63 S: 1.9925-00 / 1.9860-50 / 1.9800 Facing a strong Resistance at 1.9970, Cable has seen a slide in the day. It managed to find Support near 1.9865, however, if it is unable to rise towards 1.9900 and beyond in the day, there could be further slides in the coming days. There is an important Support that needs to be noted at 1.9830, which if broken is expected to change the bias from bullish, currently, to bearish. Yesterday a close above 1.9925 was seen and a follow-up rally was expected today. However, a fall from here, as long as 1.9830 is not broken, will not change the overall momentum. AUD-USD @ 0.9545/48... Could test 0.95 R: 0.9600-10 / 0.9640-50 / 0.9700 S: 0.9550-40 / 0.9500 / 0.9470-60 / 0.9400 Aussie has a fall in the day as the Dollar has strengthened since morning. For the remainder of the day, there is an important Support at 0.9550-35, a break of which will test the longer-term trendline at 0.9500. To see the above mentioned trendline click on: http://www.kshitij.com/graphgallery/audcandle.shtml The Support at 0.9500 is a longer term Support and mot expected to break soon. If, however, a break below were seen, it would raise serious threats to the overall bullish momentum. For now, a test of 0.9500, also the Max Low for the day, seems likely over the US session today. 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.