FX Thoughts for the Day

Daily Forex Technicals | Written by Kshitij Consultancy Services | Oct 13 08 13:02 GMT |

USD-CHF @ 1.1302/06... US closed today

R: 1.1360 / 1.1390-1400 / 1.1450 / 1500
S: 1.1300 / 1.1250 / 1.1200 / 1.1150

Facing Resistance near 1.14 the pair has slipped lower during the day. As long as the market is pressured below the Resistance a slip towards the Support region could be seen. For now, immediate Support is seen at 1.1300, 1.1250 and at 1.12 below it.

However, if the pair manages to rise beyond the Resistance at 1.14 it could then target 1.15-16, which happens to the next level of Resistance. Overall the pair is bullish and there is a good chance that the pair could break the Resistance at 1.15-16 to rise higher over the coming weeks to challenge the 200-week SMA at 1.2075.

The day ahead might see a calm trading session as the US is closed today.
GBP-USD @ 1.7361/65... Rise seen today

R: 1.7390 / 1.745-70 / 1.7500 / 1.7575
S: 1.7300 / 1.7275 / 1.7200 / 1.7150 / 1.7070

The pair has seen a sharp rise in the day to 1.7345. However, the pair could now face some Resistance near 1.7350-80 today. Also a dip towards 1.7200 could be seen before further upside becomes likely.

Overall the pair could slip lower once again towards 1.72 and 1.70 if the Resistance at 1.7350-7400 holds. However, the overall view remains that the pair could trade within a wide range, the boundaries not defined immediately, over the next couple of weeks.

As long as Cable trades below 1.7640, the pair could eventually slip towards the medium term target of 1.6550, the 61.8% retracement of the fall from 1.3682 ('01) to 2.1163 ('08). To see the chart click on:

http://www.kshitij.com/graphgallery/gbpcandle.shtml
AUD-USD @ 0.6700/04... Could slip lower

R: 0.6750-60 / 0.6800 / 0.6825-50 / 0.6900
S: 0.6660-50 / 0.6600 / 0.6550 / 0.6500 / 0.6450

The pair did rise during the day to face Resistance near 0.6800. However, dips towards 0.6660 seem to attract some buying and the pair has some immediate Support in the region.

However, the day ahead could see the pair slip towards 0.66 and eventually lower towards 0.65 on a break of Support at 0.6660. As long as Support at 0.6660 holds, there remains an outside chance that the pair rises past the Resistance at 0.6800-25

Overall, there is a strong chance that the market could see the pair trade within a wide range from 0.6330?0.7000 over the next couple of weeks.

Holding:

Short AUD 10K at 0.6750, SL 0.6825, TP 0.6500

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.