FX Thoughts for the Day

Daily Forex Technicals | Written by Kshitij Consultancy Services | Nov 03 08 13:42 GMT |

USD-CHF @ 1.1558/63... Could rise towards 1.1650 R: 1.1625-50 / 1.1700 / 1.1750 S: 1.1550 / 1.1470-50 / 1.1400 / 1.1350-25 / 1.1250-20 Finding some Support at 1.1470 the pair risen once again, negating the immediate bearishness that was expected to lead to a slip towards 1.1400. For now, there is a bullish flag formation on the hourly chart, which indicates that there is a possibility of a rise towards 1.1650, on a rise past 1.1590. Having said this, the pair could continue to vacillate between 1.1550-1.1475 for the day if the flag does not hold. Overall the pair has bullish momentum, which has been restricted by the Resistance at 1.1700-50. A re-test of the Resistance might result in a break above. GBP-USD @ 1.6179/83... Could slip lower R: 1.6300 / 1.6350 / 1.6400-50 S: 1.6200 / 1.6000 / 1.5900-5800 Cable rose to a high of 1.64 only to find a strong Resistance in the region. A slip since then has brought the pair lower during the day. There is a minor Support in the region between 1.6175?6200. The is a bigger probability that the Support at 1.6200 will give way as the BOE is expected to lower interest rates. The US ISM scheduled to release today would also be a crucial data release. With an expectation of 41.60 the market has factored in a slight dip from last release at 43.50. To see the ISM chart click on: http://www.kshitij.com/fundamentals/funcharts/usism.shtml Overall the pair is expected to trade within 1.58-66, as it remains ranged. The bias however, will be bearish as the downtrend could resume after the small relief rally that saw the pair test 1.6675 last week. AUD-USD @ 0.6765/61... RBA rate cut tomorrow R: 0.6850 / 0.6900-25 / 0.6975 S: 0.6775 / 0.6700 / 0.6650-00 / 0.6525-00 The pair is unable to rise beyond 0.6900 owing to the Resistance. Also the fact that Dollar-Yen has once again slipped to 99.00 also does not help the pair. For now, it has some Support in the 0.6720 region, however, as the RBA is set to cut interest rates tomorrow a sharp rise from the current levels is not likely. Overall the rate cut could see the pair slip lower. However, the statement released by the RBA will be crucial to judge the dept of the problem that the economy currently faces. Also how strongly the RBA hints at further rate cuts for the future would be of importance. To see the chart of RBA interest rates click on: http://www.kshitij.com/fundamentals/funcharts/aurba.shtml 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.