FX Thoughts for the Day

Daily Forex Technicals | Written by Kshitij Consultancy Services | Jul 30 08 11:28 GMT |

USD-CHF @ 1.0461/65.... Minor Resistance at 1.0480 R: 1.0480 / 1.0500 / 1.0550-60 S: 1.0400 / 1.0370-350 / 1.0300 The eventual breakout seen on the pair could now target the overall target of 1.0500-550. The rally in the pair is currently facing a slight Resistance at 1.0480. However, this interim Resistance is expected to break sooner than later. If a break is not seen in the next few hours, a dip towards 1.0430, and possibly even 1.04 could be seen. However, such a dip should be seen as an opportunity to buy. GBP-USD @ 1.9796/99... Pressured downward R: 1.9825 / 1.9850 / 1.9925 / 1.9975 S: 1.9750 / 1.9712-00 / 1.9660 A short rally in the day has resulted in a high of 1.9843 on Cable. However, the Resistance at 1.9850 restricted further upside from there. For now, since a dip towards 1.9800 has materialized once again, during the US session the pair is expected to remain pressured to trade below 1.9800 and dip towards 1.9750, if not 1.9712, the Max Low for the day, could be seen. Overall, since the bias has shifted to bearish from bullish earlier, one should go ahead an look to sell the rallies than buying dips. AUD-USD @ 0.9476/80... Testing the 21-week SMA R: 0.9500-10 / 0.9550-60 / 0.9600 S: 0.9450-40 / 0.9400 / 0.9370-60 After finding Support at 0.9460-50 region the pair had risen only to find Resistance near 0.9500. For now, till the 21-week SMA at 0.9450 holds, there remains a possibility of a rally from here once again. The upside however, seems to be restricted to 0.9550-67 for the day. This said, Gold has broken past the important Support at 915-910, and a close below 910 today would be bearish for the commodity. This is also bearish for AUD-USD given the high correlation. 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.