FX Thoughts for the Day

Daily Forex Technicals | Written by Kshitij Consultancy Services | Dec 19 08 13:38 GMT | USD-CHF @ 1.1032/35...Support at 1.5275 for EUR-CHF holds

R: 1.1007 / 1.1369-79 / 1.1460
S: 1.0799-79 / 1.0722 / 1.0685

Swiss has moved upwards of the Max projected high (at 1.0970) for today as the Support at 8-week MA on EUR-CHF Cross held on and Euro faltered. It also faces a Resistance at 1.55 at 21-day MA presently. If that holds on, we could see an almost proportionate move in Swiss and Euro in the negative fashion. However, it has moved up quite a bit during the day and could be expected to move in a sideways fashion during the US session. Though there are not too many Resistances on its way towards 1.1350, a sideways consolidation in Euro could prompt Swiss to hold on at the current levels as well.

However if it does move up, we could see it scaling 1.1350 and find Resistance there. It is currently finding Resistance at 21-SMA on the 4-hourly candle chart. Bullishness may re-emerge on a rise past this level.

GBP-USD @ 1.4981/84...Entangled in MAs

R: 1.5068-71 / 1.5101-13 / 1.5146-53
S: 1.4689 / 1.4590

The downward journey in Cable has been curtailed a little as the pair has got entangled in the braiding of the 8-, 13- and 21-day MA. This is turning out to be some Support, a breach of which could take the pair towards 1.4590, the Support which we have mentioned in the morning.

In the longer run, the pair looks to consolidate in a broad range between 1.45-1.55. However a monthly close below 1.53 could be very bearish for the pair as it would have then broken an important Support on the monthly close charts. To see the chart of Cable, click on: http://www.kshitij.com/graphgallery/gbpmth.shtml#mth

AUD-USD @ 0.6810/12...Support at 0.6562

R: 0.6909-26 / 0.6953 / 0.7063
S: 0.6787-84 / 0.6728-05 / 0.6684

Aussie has traded lower and broken the 21-SMA on the 4-hourly chart on the downside. A dip from here on could find a substantial Support at 0.6562 (which is the 21-day MA). However, if the pair is able to take Support at 8-day MA (at 0.6727) itself which also coincides with the trendline Support as can be seen from the daily chart, it could tread higher taking 8-day MA as the Support going forward through the US session. A rise from here could possibly find Resistance at 0.7050-60. To see the chart of Aussie, click on:

http://www.kshitij.com/graphgallery/audcandle.shtml#candle

Kshitij Consultancy Service
http://www.fxthoughts.com

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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.