FX Thoughts for the Day

Daily Forex Technicals | Written by Kshitij Consultancy Services | Dec 02 08 12:42 GMT |

USD-CHF @ 1.2063/67...Traded higher R: 1.2069-92 / 1.2247-76 / 1.2320 S: 1.2049-33 / 1.1941-39 / 1.1886-67 The pair is trading stronger having touched a high of 1.2094 after seeing a low of 1.2021 during the early European session today. It has managed to stay above the 8-, 13- & 21-day MA. If it manages to stay above, there is good potential that it may continue with bullishness seen in the longer term charts (both weekly and monthly) and may inch upwards to 1.22 in the near term. If that happens, the downmove seen in the pair since 24th Nov could just be ruled out as correction. We have a bullish bias for the pair. However, a down slide (if seen) could find Support at 1.1939. We continue to mention our view of a long term consolidation range between 1.18 and 1.26 for the next few months. It could come out of the range if it is able to trade lower than the Long Term Support at 1.18 for significant time on the downside. GBP-USD @ 1.4931/37...Range of 1.4630-1.5090 R: 1.5056-88 / 1.5173 S: 1.4791 / 1.4685 / 1.4420 Cable has traded weaker during the day and has managed to stay in a band of 1.4776-1.4941. The range of 1.4630-1.5090 mentioned in the morning for the pair may hold for the rest of the day as well with a downward bias. As mentioned in the morning, the Support near the 1.45-1.46 region looks strong enough for the pair. This being the 61.8% retracement of the rise from 1.0520 (Feb 1985) to 2.1163 (Nov 07) as seen on the monthly candle chart. Since the last few days, the pair had made successful attempts to remain above the 21-day MA which could probably come to rest today and end the short lived upside it saw on the last 7-8 trading days. In the last hour, the pair has found Support at 1.4791 and then bounced back sharply. Given the kind of volatility, that the pair has seen over the last few days, not much looks predictable for the pair as it continues to make wild swings in both the directions. AUD-USD @ 0.6469/72...Testing 8-day MA Resistance R: 0.6478-503 / 0.6526-38 S: 0.6416-06 / 0.6123-07 / 0.6029 The pair has traded higher during the day. It has traded between 0.6344 and 0.6467. Having risen little in the last few hours, the pair has also unsuccessfully attempted to breach the 8-day MA at 0.6477. But on a fresh rally, this Resistance could easily be breached with potential to move up towards 0.6538 where the pair could make fresh attempts to rise past the 21-day MA Resistance line. However, inability to sustain the marginal upmove, could result in the pair having potential to go down towards 0.61 where the buyers could chip in to support the pair. 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.