FX Thoughts for the Day

Daily Forex Technicals | Written by Kshitij Consultancy Services | Nov 06 08 11:54 GMT |

USD-CHF @ 1.1633/37... Could rise within the range R: 1.1700 / 1.1750 / 1.1800-25 / 1.1870 S: 1.1600 / 1.1550 / 1.1500 / 1.1450 Rise in the day was curbed by the Resistance at 1.1700 and a slip has been seen since then. The day ahead is likely to see the pair remain broadly ranged between 1.1550-1.1800. However, there is some interim Support in the 1.1625-00 region which could provide the momentum for the pair to rise towards the top of the above mentioned range. Overall the range of 1.1550-1.1800 is likely to hold this week. However, interest rate decision by ECB scheduled for later in the day, could have an impact on USD-CHF as well. GBP-USD @ 1.5895/99... BOE meeting awaited R: 1.5900 / 1.5970-6000 / 1.6150 / 1.6200-20 S: 1.5800 / 1.5660 / 1.5550-00 / 1.5260 The pair has dipped to find Support near 1.56 early this week. A rise since then faced Resistance at 1.62 and it has brought the pair to trade near 1.59 today. The market currently awaits the release of the interest rate decision along with the statement by the Bank of England. Market has more or less priced in a rate cut of 50-bps by now and this could lead to calm trading till the release. A bullish indication, that the economy is responding to the measures taken by the BOE, could see the pair rise towards 1.62 during the US session. A statement indicating that the economy could face prolonged crisis could see the pair crash to Support near 1.55. A worse case scenario sees the Support at 1.5260 being tested again. To see the chart of BOE interest rates click on: http://www.kshitij.com/fundamentals/funcharts/ukboe.shtml AUD-USD @ 0.6772/76... Could rise above 0.6825 R: 0.6825 / 0.6870 / 0.6900-25 / 0.6975 S: 0.6700 / 0.6660 / 0.6600 / 0.6520 The pair has seen a steady rise in the day after finding Support just below 0.6700 early this morning. The dip below 0.6700 stopped us out of the long entered during the US session overnight at 0.6770. The rise in the pair has been checked by the Resistance at 0.6825 during the day, however, the day ahead could see the Resistance break and a follow-up rally could target 0.6900 from here. We were bullish at the beginning of the week and had called for a test of 0.72 as well. However, the inability to scale past 0.70 during the week could now result in the pair ending the week below 0.7000. 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.