FX Thoughts for the Day

Daily Forex Technicals | Written by Kshitij Consultancy Services | Jun 16 09 12:22 GMT |

USD-CHF @ 1.0846/48...Support at 21-DMA R: 1.0907 / 1.0956 / 1.0997 S: 1.0830 / 1.0814-00 / 1.0770 Dollar-Swiss has fallen during the day and our Limit Buy order at 1.0850 has got executed. We would aniticpate an increase. However, the currencies seems to have prepared themselves for upcoming US economic data releases as they now rest on/ face Resistance from some important short term levels. Dollar-Swiss is resting on the 21-DMA. A rise could take it towards 1.0964-1.1000 Resistance region while a break of the 21-DMA Support is likely to reverse the short term buoyant trend and take Support at 1.0770. We shall have to watch among the rest, the US housing starts data. To see the chart, click on: http://www.kshitij.com/graphgallery/chfcandle.shtml#candle Holding: USD 10K Long at 1.0695, TSL 1.0790 (up from 1.0770), TP Open USD 10K Long at 1.0850, SL 1.0790, TP Open Cable GBP-USD @ 1.6464/68...Rose sharply R: 1.6650-65 / 1.6778 / 1.6847 S: 1.6421 / 1.6360 / 1.6328-03 Cable has risen sharply towards 1.65 and is likely to next target 1.6665, the previous high of 3rd June 2009. Though it had dipped earlier towards 1.6209, the Support at 1.6131 was not tested. It had been Supported on the 200-MA on the 4-H chart. A lot depends on the data releases for today. The Projected Max High for the day has already been breached. A rise past 1.6665 could be very bullish next targetting 1.6778-6813. With Crude having gone back above 72, the Cable too seem to be looking very buoyant now. Aussie AUD-USD @ 0.8011/16...Indecisive R: 0.8069 / 0.8154 S: 0.7974 / 0.7942-34 / 0.7853 Aussie has risen sharpy contrary to our expectations ahead of the Housing Starts. It has in the process broken above the 8- and 13-DMAs. It seems to have made the double top. So, one might now want it to come down sharply. But there could be the danger of triple top. But we would not bet too much on that. Presently, it has Resistance at 0.8069. A rise past this is likely to take it towards 0.8200 while a sharp fall could make it fall towards 0.7853 being the Projected Max Low for the day. 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.