FX Thoughts for the Day

Daily Forex Technicals | Written by Kshitij Consultancy Services | Jul 06 09 13:09 GMT |

USD-CHF @ 1.0935/38...Ranged, sell rally R: 1.0993-1008-1019 / 1.1065 S: 1.0917-0897 / 1.0855 / 1.0805-0795 There is significant Range Resistance + Moving Average Resistance in the 1.0990-1025 region, as mentioned in the morning. Assuming this to hold, there should be good chances of a fall towards 1.0750 over the coming days. A rise past 1.1065 (projected Max High on the 3-day chart) would suggest that the "Range Trade" idea might be wrong. Limit Sell Order: Sell USD 20K at 1.0980. SL 1.1070 for USD 10K, TP 1.0860 SL 1.1090 for USD 10K, TP 1.0770 Cable GBP-USD @ 1.6152/55...Bearish, may be sold on rally R: 1.6180 / 1.6250-70 / 1.6305-15 S: 1.6082 / 1.6037 The Pound has seen a sharp fall today after having broken below the 200-MA on the 4-hour chart at 1.6294. The fall had started after the Pound closed below the 21-day MA (1.6382) on Friday. By all conventional chart reading, the Pound is now in Bear territory. The chances of a rise to 1.65 are very low now. Instead, the chances of a further fall towards 1.60 and 1.58 have increased. On the downside, there is some Support at 1.6082, the projected Max Low for the Day. If and while this holds, we might see a small rally towards 1.6180-6205, before the fall resumes. In case of a rise past 1.6180, however, today's fall to 1.6100 may turn out to be a false break of the 1.6180-6610 range and might lead to a further rise towards 1.6280-6320 tomorrow. Aussie AUDUSD @ 0.7899/7902...Resistance at 0.7925 R: 0.7924/ 0.7989/ 0.8038 S: 0.7835/ 0.7804/ 0.7751 Aussie has fallen below trendline Support on the 4 hr chart (joining lows at 0.7789 on 23-June and at 0.7902 on 02-Jul) and may now fall further towards 0.7835 horizontal line Support. If this support breaks, this pair may see a fall towards 0.7804 (Projected Max low for the day). Else, the pair may bounce back towards 200-MA Resistance on the 4-hr chart at 0.7989 after breaking the trendline Support turned Resistance (joining lows at 0.7789 on 23-Jun and at 0.7902 on 02-Jul). Limit Sell Order: Sell AUD 10K at 0.7920, SL 1.7955, TP 0.7860 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.