FX Thoughts for the Day

Daily Forex Technicals | Written by Kshitij Consultancy Services | Sep 02 09 12:22 GMT |

USD-CHF @ 1.0671/74...Resistance at 1.0700 R: 1.0700 / 1.0750-60 / 1.0800-10 S: 1.0630-00 / 1.0570/ 1.0530-00 Swiss is trading in a very narrow range of 1.0650-80. As any significant move on either side was not seen during the day, our view continue to remain the same on the pair. On the upside 1.0700 is the significant level to watch for. A strong break above 1.0700 might see a rise towards the Resistance at the 55-DMA (1.0750) during the day. Note that the projected Max-High for the day is 1.0759. A further strong upmove above 1.0750 might take it up towards 1.0850 over the next few days. However if it continues to trade below 1.0700 we might see a downmove towards 1.0630-00 in the US session. A break below 1.0600 might further pull it down towards 1.0550-30. Cable GBP-USD @ 1.6223/26...Strong Support zone 1.60-61 R: 1.6222-44 / 1.6278 / 1.6350 S: 1.6113 / 1.6069 / 1.6029-20 / 1.5750 Cable has risen once again on the Support of 1.6113. And as mentioned in the morning, till this holds, we would continue to bet in favour of the Support zone of 1.60-1.61. We also continue to mention that if broken, it could be very bearish targeting 1.5750 (38.2% retracement of the rise since March 2009) initially and 1.5600 thereafter. Though the weekly charts suggest bearishness immediately, the same shall be comfirmed on a break of the Support zone mentioned above. Aussie AUD-USD @ 0.8303/07...Holding long R: 0.8338-53 / 0.8378 / 0.8450-70 S: 0.8280 / 0.8250-30 / 0.8175 Aussie traded in a range of 0.8280-0.8340 during the day. Failure to see a strong downmove below 0.8300 during the day is still keeping the bullish sentiment intact. on the upside a break above 0.8350 might see a rally once again towards the significant Resistance region 0.8450-70 over the next few sessions/days. On the downside as mentioned earlier significant Support is seen in the region 0.8250-30 which we expect to hold on any downmove below 0.8300. Holding: AUD 10K Long at 0.8280, SL 0.8210, TP Open. As soon as the market trades 0.8360 bring the SL up to 0.8290 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.