FX Thoughts for the Day

Daily Forex Technicals | Written by Kshitij Consultancy Services | Aug 12 08 12:06 GMT |

USD-CHF @ 1.0891/95.... Support at 1.0850 holds

R: 1.0900 / 1.0925 / 1.0960 / 1.1000-25
S: 1.0850 / 1.0800 / 1.0750-35

As per our expectation, a dip to 1.0850 was seen in the day. The Support was strong and as a result a rise towards 1.0920 has been seen since then. Further ahead in the day, a rise towards 1.0950 could be possible as long as this Support at 1.0850 holds.

To see the chart of the pair click on:

http://www.kshitij.com/graphgallery/chfcandle.shtml

http://www.kshitij.com/graphgallery/chfma.shtml

The overall bias is bullish with an overall target of 1.1030, the 38.2% Retracement of the fall from 1.3288 (Nov-05) to 0.9637 (Mar-08).
GBP-USD @ 1.8995/99... Seems soft for further fall

R: 1.9100 / 1.9180 / 1.9275
S: 1.8940 / 1.8910 / 1.8875

The pair has not seen a big move in the day despite the Core CPI figure being released at 1.9%. Most analysts are of a similar view that even the rising inflation would not help the pair to strengthen from here. The higher inflation combined with almost negligible growth is a serious concern for the economy. The UK economy is facing a tough situation, and this could lead to a recession in the near future.

Over today-tomorrow it could fall further towards 1.88.
AUD-USD @ 0.8744/48.... Heading towards 0.8650

R: 0.8800 / 0.8852 / 0.8880-8900
S: 0.8700 / 0.8670 / 0.8640

The pair continues to be bearish in the longer term. However, it has dropped to the Support at 0.8700 during the day and could result in a small bounce towards 0.8950, if not higher.

The charts suggest that the pair has been oversold and could result in a bounce from the current levels. Market had earlier “Sold the rumour”, when it believed that the RBA will cut rates when New Zealand central bank did so. However, the view that the market could now “Buy the fact” has been ruled out completely after the fall seen in the day. This could lead to over weekly target of 0.8650 being achieved mid week itself.

To see the charts of the pair click on:

http://www.kshitij.com/graphgallery/audcandle.shtml

http://www.kshitij.com/graphgallery/audma.shtml

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.