FX Thoughts for the Day

Daily Forex Technicals | Written by Kshitij Consultancy Services | Aug 21 08 12:05 GMT |

USD-CHF @ 1.0923/27.... Could dip further if 1.09 breaks.

R: 1.1000-25 / 1.1040-50 / 1.1150-75
S: 1.0950 / 1.0900 / 1.0840-20 / 1.0800

The pair has once again gone into the tight trading range of 100 pips, this time between 1.09-1.10. Overall the pair has a decent Support at 1.09, and if it continues to hold a rise towards the Resistance zone near 1.1030-60.

If on the other hand the Support at 1.09 gives way this week, the week ahead could see some corrective dips.
GBP-USD @ 1.8655/59... Within 1.85-1.87

R: 1.8700-15 / 1.8760-80 / 1.8820
S: 1.8620 / 1.8560-50 / 1.8500

Cable rose in the day to face a stiff Ressitance at 1.87, a level it tested a couple of times over. However, Cable failed at the Resistance and has come off since then to trade at 1.8630. In the process, our TSL on the pair got triggered.

For now, 1.87 is an important Resistance, while 1.85 forms the base of the immediate trading range. A break of this trading range is goin to set the momentum of the pair going ahead from here.
AUD-USD @ 0.8697/701.... Support could spring a bounce

R: 0.8720 / 0.8750 / 0.8790-8806 / 0.8875
S: 0.8675-50 / 0.8640-30 / 0.8600

The Support at 0.8650 is strong and is expected to hold this week. Provided it does, a rise towards 0.8820 could be seen. However, note that the Max High for the day is at 0.8754 and a rise further beyond may not be seen in the day. The bias for now is sideways with the range being 0.86-0.8750. A break of this range would direct the market further from here in the direction of the break.

The overall there is a possibility of upside, however, a long consolidation here (0.8650-0.8750), if seen, could negate the possibility of the rise beyond the range.

Holding:

* Long AUD 10K at 0.8720, Exit at 0.8680 or 0.8730, whichever is seen earlier.

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.