FX Thoughts for the Day

Daily Forex Technicals | Written by Kshitij Consultancy Services | Aug 11 08 12:30 GMT |

USD-CHF @ 1.0793/97.... Could test 1.0850 R: 1.0850 / 1.0875 / 1.0909 S: 1.0800 / 1.0750 / 1.0735 After dipping slightly during the day to find Support at 1.0735-48, the pair is once again heading towards the Resistance at 1.0850. The Resistance seems strong and might not break in the day, also because the projected Max High for the day is at 1.0856. For now, the rise from here could be stronger as the Support at 1.0735 has held after being tested earlier in the day. If 1.0735-50 continues to hold, a break of 1.0850 may be seen in the days to come. Overall the market direction is bullish and expected to face a major Resistance at 1.1050 over the week. To see the chart click on: http://www.kshitij.com/graphgallery/chfcandle.shtml GBP-USD @ 1.9192/96... Vulnerable for further dips R: 1.9225 / 1.9250-9 / 1.9275 S: 1.9150 / 1.9125 / 1.9075 As per expectation a rise in Cable was seen during the day, as the selling pressure over the last week has led the pair being oversold and a bounce seemed quiet likely. For now, as long as the market trades above 1.9200-9180, there remains a possibility of a re-test of 1.9250-60, the Max High for the day. The pair remains bearish overall, with the possible target of 1.88, if the Support at 1.91 breaks. To see the chart of Cable click on: http://www.kshitij.com/graphgallery/gbpcandle.shtml AUD-USD @ 0.8904/08.... Sell rallies R: 0.8952 / 0.8980 / 0.9025 S: 0.8867 / 0.8835 / 0.8780 After dipping to test 0.8834 early in the day, the pair had risen slightly. However, after facing Resistance at 0.8952, it has once again come lower to trade at 0.89 currently. Note that RBA monetary policy statement this morning has not been able to impact the pair negatively despite lowering of the growth estimates and also hinting at rate cuts in the near future. The basic reason behind this movement is that a major correction was seen over the last week. The overall trend remains bearish and could head towards 0.8650 over the latter part of the week. The strategy should remain to sell rallies. Happy Trading! 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.