FX Thoughts for the Day

Daily Forex Technicals | Written by Kshitij Consultancy Services | Dec 11 08 13:36 GMT |

USD-CHF @ 1.1924/28...Projected Max Low at 1.1795 R: 1.1981-2004 / 1.2013-47 / 1.2095 S: 1.1894 / 1.1858-40 / 1.1795 Swiss has broken the Support at 1.1934 (8-week SMA) during the day and recorded a low of 1.1891. It continues to be pressured lower and may potentially find Support at 1.1840 during the US session. However, over a longer time frame, it could potentially move towards 1.1750 as it has once again moved on to the wider band as indicated by the daily chart of Swiss. To see the chart, click on: http://www.kshitij.com/graphgallery/chfcandle.shtml#candle The projected Max Low for the day at 1.1795 looks possible to be tested during the US session. Monthly chart indicates that Long Term consolidation may take place in a wide range of 1.12-1.26 over longer period of time going forward. GBP-USD @ 1.4876/81...Holding Short R: 1.4992-5019 / 1.5097 / 1.5243 S: 1.4854-33 / 1.4821-06 / 1.4509 Cable did manage to spike above the 13-day MA at 1.4493 when it touched a high of 1.4998, however has been trading little lower from there. Till this holds, a fall towards 1.48 is possible during the US session. Whether it can become bullish from hereon can only be confirmed if the 13-day MA continues to hold. We are presently at the money on our present holding in Cable and we feel there are more chances of an downslide than of an upside. Holding: Short GBP 10K at 1.4916, SL 1.5055, TP 1.4878 AUD-USD @ 0.6654/58...Resistance at 0.6714 R: 0.6714 / 0.6892-0.6900 / 0.6931 S: 0.6593-85 / 0.6557-37 / 0.6527-04 The pair manages to move ahead taking Support of the 13-day MA and looks good to move towards 0.6800 having broken the Resistance at 0.6625 which con be confirmed once the pair is able to stay above 0.6651 over a considerable time frame. But on the way up, there is another important Resistance at 0.6714 [61.8% fibonacci retracement of the rise from 0.4775 (Apr 2001) to 0.9851 (July 2008)]. The important thing to see would be if this long Term Resistance at 0.6714 is broken and if the pair has the ability to move further up from there. A downside could possibly be restricted to 0.6490 (21-day MA). 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.