FX Thoughts for the Day

Daily Forex Technicals | Written by Kshitij Consultancy Services | May 28 09 12:13 GMT |

USD-CHF @ 1.0894/97...Support at 1.0800 R: 1.0916 / 1.0989-1012 / 1.1096-1114 S: 1.0817 / 1.0750 / 1.0619-0598 Dollar-Swiss has dipped after rising towards 1.0955 during the day. We had exited out of the Short entered at 1.0940 at cost as there was an outside chance of a rise towards 1.1050-70 as suggested by the 4-hourly chart. Instead, the pair faced Resistance at 1.0960-80 which was sufficient enough to keep the pair ranged between 1.0871-1.0955 during the day. On the downside, there's Support in the region of 1.0817-0800 for the US session. On a rise towards towards 1.1050, we would like to re-enter the Short, for which we place a Limit Sell Order. The chances of an eventual decline towards 1.0500 is still there only on a comprehensive break past 1.0800-0750. Limit Sell Order: Sell USD 10K at 1.1040, SL 1.1120, TP 1.0850 Cable GBP-USD @ 1.5918/23...Resistance at 1.6047-80 R: 1.5954-68 / 1.6047-80 / 1.6448 S: 1.5838 / 1.5785 / 1.5604 Cable has bounced back after recording a low of 1.5853 during the day. Overall the Cable has been oscillating between 1.58-1.61 over the last 5 days. The view continues to be the same as mentioned in the morning. A comprehensive rise past 1.6050-80 is likely to take the pair towards 1.64-65 intially and towards 1.6660 eventually over a longer time frame. On a dip, a break below 1.5838 could next target 1.56. Limit Buy Order: Buy GBP 10K at 1.5600, SL 1.5480, TP Open Aussie AUD-USD @ 0.7813/17...Could dip towards 0.77 R: 0.7889 / 0.8087 / 0.8159 S: 0.7793 / 0.7712-06 / 0.7627-15 Aussie dipped during the day toward 0.7744 and has bounced since then. We continue to believe that it could still move towards 0.7700-0.7675 over the US session or tomorrow which could provide a good opportunity to go Long. A further dip (though not likely) could prove to be very bearish which could take the pair towards the channel Support at 0.7500-7450 over the next few days, if not immediately. On a rise, we do not anticipate it to break past the Resistance at 0.7920 in a hurry. Limit Buy Order: Buy AUD 10K at 0.7720, SL 0.7650, TP 0.7850 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.