FX Thoughts for the Day

Daily Forex Technicals | Written by Kshitij Consultancy Services | May 20 09 11:36 GMT |

USD-CHF @ 1.1064/67...Likely to test 1.0980 R: 1.1102-26 / 1.1156-84 / 1.1220 S: 1.0981 / 1.0923-09 / 1.0800-0750 Dollar-Swiss has dropped recently and looks likely to test the Support at 1.0980 during the US session which is likely to provide a good opportunity to go Long with a strict Stop. But if a comprehensive break below this Support is seen, it would open gates for a fall towards 1.0800-1.0750 over the next few days. We reiterate our medium term view on Dollar-Swiss. Till the Support at 1.0980 holds, and till Gold continues to be ranged between 910-935 with Support near 890-900, we might see some pullback on Dollar-Swiss towards 1.14 over the next few weeks/ months. To see the chart of Gold, click on: http://www.kshitij.com/graphgallery/goldcandle.shtml#candle and Dollar-Swiss, click on: http://www.kshitij.com/graphgallery/chfcandle.shtml#candle Limit Buy Order: Buy USD 10K at 1.1010, SL 1.0960, TP Open Cable GBP-USD @ 1.5480/84...200-DMA Resistance holds R: 1.5554 / 1.5640 / 1.5806 S: 1.5426 / 1.5346 Cable continues to inch closer to the 200-DMA at 1.5554 as the pair has slipped a bit after touching a high of 1.5537. The crude impact on the pair continues to be visible as the relationship gains strength. A rise past the 200-DMA would be seen to coincide with an expected rise past the Resistance on Crude at 61, which is then likely to turn very bullish both for Crude and Cable. A rise past this might make a substantial case for the Cable to rise further towards 1.6050 over the next few weeks/ couple of months. To see the chart of Cable and the trendline Resistance, click on: http://www.kshitij.com/graphgallery/gbpcandle.shtml#candle Aussie AUD-USD @ 0.7719/21...May dip towards 0.7620 R: 0.7735 / 0.7824 / 0.7885 S: 0.7696 / 0.7618 / 0.7567 The pair has not risen beyond the US session high of 0.7788 nor has it dipped towards 0.76 as anticipated. It could possibly slip towards 0.7620-30 during the US session today and find Support of the 100-MA on the hourly chart which has not been breached too often over the last one month. Such a happening would provide a opportunity to go Long on Aussie. Hence we continue with our Limit Buy Order with slight modifications. Limit Buy Order: Buy AUD 10K at 0.7630, SL 0.7600, TP Open 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.