FX Thoughts for the Day

Daily Forex Technicals | Written by Kshitij Consultancy Services | Aug 25 08 11:59 GMT |

USD-CHF @ 1.0984/88... Resistance at 1.1035 held again.

R: 1.1000-25 / 1.1040-50 / 1.1100
S: 1.0975-50 / 1.0900-880 / 1.0850 / 1.0800

A rise in the pair has once again been restricted to 1.1035, where it faces a strong Resistance. Since then, a dip towards 1.097 has been seen.

Later in the day, expect a further dip towards 1.0955 where the pair has some Support and a rise from there could be seen once again to test the Resistance. A sip below 1.09, unlikely for now, could attract buying interest in the 1.0840 region.
GBP-USD @ 1.8495/99... Could rise towards 1.8564

R: 1.8500 / 1.8560-80 / 1.8620-60
S: 1.8420 / 1.8365-50 / 1.8300

A small rise since morning has been seen in the pair. For the day, Cable could see a further rise towards the Max High for the day at 1.8564. The Support at 1.8480 is essential for the rise towards 1.8564 to materialize.

Overall the pair continues to remain in a downtrend and is expected to slide further towards 1.83 in the days to come. The UK economy has seen no growth in the last quarter and could continue to face further growth related and housing related issues.

BOE has still not shifted focus from inflation to growth. However, now there could be some rate-cutting action in the days to come, which could eventually take the pair further lower.
AUD-USD @ 0.8674/78... Could rise towards 0.88

R: 0.8721 / 0.8765 / 0.8800 / 0.8850-65
S: 0.8650-25 / 0.8600 / 0.8581

Aussie had faced major Resistance on a rise to 0.88 last week. However, since then a fall towards 0.8614 has been seen. For the day ahead, a rise towards 0.8721, Max High for the day could be seen. Similarly a further rise towards 0.8750-0.88 cannot be ruled out completely as the Moving Averages are flat and indicating towards the possibility of a rise again.

This said the overall picture is that the pair could correct further this week and could slip towards 0.85, if not 0.84 over the week ahead. To see the chart click on:
http://www.kshitij.com/graphgallery/audcandle.shtml

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.