FX Thoughts for the Day

Daily Forex Technicals | Written by Kshitij Consultancy Services | Jan 25 10 12:14 GMT |

USD-CHF @ 1.0384/89...Resistance at 1.0425 holding R: 1.0425 / 1.0485-0500 / 1.0520 S: 1.0380 / 1.0320-00 / 1.0265 The Resistance at 1.0425 held during the day as expected and Swiss has come off from the high of 1.0423. It is now oscillating around the Support at 1.0380 for sometime. We expect the broader downtrend to remain intact and a strong break below 1.0380 might pull it down towards 1.0320-00 in the US session today. Note that the projected Max-Low for the day is 1.0325. Any sharp upmove is not looking likely now and we expect the Resistance at 1.0425 continue to hold. However, a break above 1.0425 might see a rise towards 1.0485-0500. Cable GBP-USD @ 1.6153/57...Resistance at 200-DMA (1.6179) R: 1.6179 / 1.6250 / 1.6297 S: 1.6140-45 / 1.6050-30 / 1.5920 Cable has risen during the day. The 200-DMA (currently at 1.6179) was tested and the pair is trading in a narrow range of 1.6145-75 since then. If this 200-DMA Resistance continues to hold, we might see a downmove towards 1.6050-30 in the coming sessions. Note that 1.0650-30 is the significant Support region to be watched for on the downside. On the other hand a strong break above the 200-DMA (1.6179) might see further rise towards 1.6250 in the US session today. Note that the projected Max-High for the day is 1.6241 Aussie AUD-USD @ 0.9062/66...Mixed R: 0.9100 / 0.9180-0.9200 / 0.9245 S: 0.9052 / 0.8960 / 0.8870 Aussie has broken above the 61.8% Fibonacci Fanline (0.9052) and is keeping up the broader uptrend alive. A strong break above 0.9100 might increase the chances of further rise towards 0.9180-0.9200 in the coming sessions. However, failure to see a break above 0.9100 might see a test of the 21-Week-MA (0.9013) once again in the US session today. As mentioned earlier 0.8960 and 0.8870 are the significant Support levels seen below the 21-Week-MA (0.9014) which might be tested on a break below the 21-Week-MA Support. Though the broader uptrend is still intact as of now the pair is looking mixed and we will have to wait and watch the market to get a clear picture. 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.