FX Thoughts for the Day

Daily Forex Technicals | Written by Kshitij Consultancy Services | Aug 18 08 12:48 GMT |

USD-CHF @ 1.0978/84.... Possibility of further upside

R: 1.1000-25 / 1.1040-50 / 1.1150-75
S: 1.0950 / 1.0900 / 1.0850-40 / 1.0800

As expected, the Support in the day at 1.09 has held and produced a bounce towards 1.0980 so far in the day. Going ahead this week could see further rise, provided the US Housing Starts does not disappoint tomorrow.

Overall the market momentum is positive and could target 1.1150 over the week, provided the Resistance at 1.1040-50 breaks. On the bigger picture there remains a possibility of a rise towards 1.14-1.15 in the medium term if the dollar continues its recovery over the coming few weeks/months.

Market Trade(at the time of writing):

* Buy 10K USD at Current Level, SL open, TP 1.1020

GBP-USD @ 1.8675/79... Could rise this week.

R: 1.8700-15 / 1.8760-80 / 1.8820
S: 1.8650-30 / 1.8610-00 / 1.8560-50

Finding Support at 1.85, a small bounce has materialized since then. However, this week expect a rise towards the 200-SMA on the weekly, which is now seen at 1.8860.

For the day, look for a rise above 1.87 later in the day, which could trigger a rise towards 1.8780 over the US session.

Overall the pair is expected to weaken further with an eventual target of 1.80-1.75 due to the impending recession.
AUD-USD @ 0.8731/35... Support of 100-week SMA held

R: 0.8750-60 / 0.8800-20 / 0.8860
S: 0.8730-00 / 0.8660 / 0.8632-20

Aussie is within the overall downtrend and could continue to slip further over the month. However, this week in particular is expected to see a rise in the pair technically. A rise towards 0.89-0.90 seems possible early this week. However, it is not advisable to enter long in a downtrend. The idea should remain to sell rallies.

With a strong Resistance at 0.90 region, a rise beyond is not expected in the pair for now. However, with the possibility of further rate cuts over the year, further dips in prices are not ruled out completely. A break below the immediate Support at 0.86-0.85, could lead to a slip towards 0.82-0.80 over the month.

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.