Friday August 21, 2009 - 12:34:07 GMT
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FX Thoughts for the Day - www.fxthoughts.com
FX Thoughts for the day : 21-Aug-2009 - 1230 GMT
EURO, JAP YEN and EURO-YEN
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Our comments on Dollar-Swiss, Sterling Pound and Australian Dollar are given below
USD-CHF @ 1.0570/74...Cautious
R: 1.0633-46 / 1.0689-0702 / 1.0720-25
S: 1.0531 / 1.0480 / 1.0376
Swiss has broken below the Support region 1.0625-00 and is now trading below 1.0600. Support is seen in the region 1.0550-30. As the pair has not shown any strong downmove after breaking below 1.0600 we might expect this Support region to hold and can expect a pull back towards 1.0630-50. We are cautious on the pair as break below the Support region 1.0550-30 might turn the pair bearish.
We got stopped out of the Longs entered at 1.0652 and 1.0620.
GBP-USD @ 1.6559/65...Near significant Resistance at the 21-DMA (1.6586)
R: 1.6586 / 1.6621 / 2.6680-6700
S: 1.6515-00 / 1.6477-67 / 1.6411
Cable has risen sharply during the day and is now trading below the singificant Resistance at the 21-DMA (1.6586). As mentioned earlier this 21-DMA is a significant Resistance to watch for which is holding the pair below 1.6600 throughout this week. If the current upside momentum continues a break above the 21-DMA Resistance and a further strong move above 1.6620 might take it up towards 1.6680-6700.
On the other hand if the 21-DMA Resistance holds, we might see a dip once again towards 1.6400
AUD-USD @ 0.8343/51...Bullish
R: 0.8421 / 0.8460-80 / 0.8550
S: 0.8310-0.8293 / 0.8278 / 0.8220-00
Aussie has risen during the day breaking above the significant Resistance at the 21-DMA (0.8316) mentioned earlier. If it continues to trade higher we might see a rise towards 0.8370-8400 in the coming sessions/days. Also a close above the 21-DMA Resistance today might increase the chances of a rise towards 0.8500 over the next few days/weeks.
Any sharp move on the downside is not looking likely now. However a break and a strong move below 0.8300 might pull it down towards 0.8220-00
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