FX Thoughts for the Day

Daily Forex Technicals | Written by Kshitij Consultancy Services | Aug 13 08 12:00 GMT |

USD-CHF @ 1.0883/88.... Could consolidate between 1.0750-1.0925

R: 1.0900 / 1.0920 / 1.0960 / 1.1000-25
S: 1.0875 / 1.0850-40 / 1.0800 / 1.0750-35

The Support at 1.08 has held in the day and resulted in a rise towards 1.0925 since then. The Resistance at 1.0925 is strong and could result in a dip once again.

Having said this, a slow consolidation could take place between 1.0750-1.0925 in the week ahead without breaking past either the Support or the Resistance.
Have a look at the 3-day chart at: http://www.kshitij.com/graphgallery/chfcandle.shtml
GBP-USD @ 1.8769/73.... Economy in Trouble!

R: 1.8800 / 1.8840 / 1.8880-8900
S: 1.8740 / 1.8720-10 / 1.8675

Our target of 1.88 given in our report earlier in the day has already been met. This sharp decline of over 240 pips in the day is owing to the data that release that was below expectation. UK Claimant count change, UK Average Earnings Index and the Unemployment rate were all released in the day and resulted in the Cable being pressured.


There are some rumours in the market about the UK raising interest rates owing to the infaltion which is close to the double their comfort level at 2.2%. However, the market is still pressuring the pair downwards. With rising interest rates in an economy that is having negligible growth, the market isnt expected to react otherwise. From here, have a keen eye on the economic releases which are continuing to worsen over the last few months.
AUD-USD @ 0.8698/0.8702.... 0.8670-60 important Support

R: 0.8705 / 0.8725-35 / 0.8765
S: 0.8630 / 0.8600 / 0.8575

As expected earlier in the day, the pair has moved higher towards 0.8740-45, and facing Resistance there has come down below 0.87 once again. From here, if the Support at 0.8670 holds, a further rise towards 0.88 could be seen over the week.

However, a break below 0.8670 would mean that the rise was just a spike up and could now be bearish once again to target levels below 0.86. The eventual target of this fall could be 0.85, which happens to be the 61.8% Retracement of the rise from 0.7674 (Aug-07) to 0.9851 (Jul-08).

Happy Trading!

Kshitij Consultancy Service
http://www.fxthoughts.com

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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.