FX Thoughts for the Day

Daily Forex Technicals | Written by Kshitij Consultancy Services | Oct 23 08 11:37 GMT |

USD-CHF @ 1.1665/69... Ranged once again R: 1.1700 / 1.1750 / 1.1800 S: 1.1600 / 1.1550 / 1.1500 / 1.1450 Strong Resistance keeps the pair trading between 1.17 and 1.16. The day ahead could see the pair slip towards 1.16. The Support at 1.1620-00 is strong and could produce a bounce to re-test the Resistance at 1.17 afresh. Overall despite the pair remaining in an uptrend the pair could slip towards 1.15 as the Resistance at 1.17 seems strong. The pair has been trading in tight range with a high possibility of it continuing for another week. Thus it is advisable to sell highs and buy bottoms. GBP-USD @ 1.6225/29... Could re-test 1.6130 R: 1.6320 / 1.6380-400 / 1.6500-25 S: 1.6200 / 1.6150-30 / 1.6060-50 Cable did not manage to trade above the Resistance at 1.6320 for long and the selling pressure has pushed the pair down lower once again to the current levels. A break below 1.62 during the US session could result in the pair slipping further lower towards 1.6130, the recent low. Overall the downtrend could have seen a relief rally towards 1.65 had the pair continued to trade above the Resistance seen at 1.6320. However, the bias is once again bearish and the pair is expected to continue to slip further. It is difficult to suggest immediate targets on the pair however, a test of 1.58 could be possible if the UK GDP indicates that the economy has seen negative growth for the quarter. AUD-USD @ 0.6634/38... Slip likely R: 0.6700 / 0.6800-25 / 0.6900 / 0.6975 S: 0.6600 / 0.6500 / 0.6465 / 0.6400 The pair continues to trade steady below the 0.67 mark after having tested 0.6732 earlier in the day. There is a stronger Resistance at 0.6820 as well, which is expected to curb the rise in the pair from here. Overall the pair is expected to remain pressured lower. We have been calling for a dip however the pair continues to delay it. Importantly, during the same time that we have been calling for a dip the pair has not risen either. This gives us the confidence that the pair could still slip towards 0.65 if not re-test 0.6330, despite some Support at 0.66. 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.