Tuesday October 20, 2009 - 11:52:03 GMT
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FX Thoughts for the Day - www.fxthoughts.com
FX Thoughts for the day : 20-Oct-2009 - 1150 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 @ 1.0096/99...Consolidating
R: 1.0122 / 1.0147-51 / 1.0185-87
S: 1.0090 / 1.0035 / 0.9886-84
Dollar-Swiss remained extremely ranged during the day as it traded between 1.0092 to 1.0117. The 21-SMA on the hourly has been pressuring the pair lower as the journey towards parity is being done in an orderly fashion.
Till in a completely bear phase, expect it to continue with the downmove with minor corrections off and on. For today a rise is likely to be contained near 1.0140-50.
USD 10K Short at 1.0225, TSL 1.0150, TP Open
As soon as market trades 1.0050, bring SL down to 1.0120.
GBP-USD @ 1.6425/28...Resistance being tested
R: 1.6435-60 / 1.6517 / 1.6638
S: 1.6368-61 / 1.6282
Cable continues to test the Resistance zone. Till this Resistance zone of 1.6435-60 holds, it can bring the pair down towards 1.6200 but a break of this Resistance is likely to make Cable very bullish. Else a break is likely to next target 1.66 over the next few days. Earlier, we exited the Cable Short entered at 1.6435 as we became wary of the potential for Cable to become extremely volatile ahead of data release. The US Housing Starts are due today.
AUD-USD @ 0.9286/89...Medium Support at 0.9166
R: 0.9359 / 0.9427 / 0.9520
S: 0.9260 / 0.9226-16 / 0.9197
Aussie was sluggish during the day. Expect the bullishness to continue, though the pace of rise is likely to wane out over the coming days. There's further upside potential towards 0.94-95 by this week or the week after.
Correction was limited to 0.9245 during the day. Expect it to rise on the Support of the 21-SMA (0.9166) on the 8H chart towards the abovementioned target.
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