Tuesday February 23, 2010 - 11:52:36 GMT
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FX Thoughts for the Day - www.fxthoughts.com
FX Thoughts for the day : 23-Feb-2010 - 1151 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 @ 1.0815/18...Might rise towards 1.0850-80 once again
R: 1.0837 / 1.0883 / 1.0940
S: 1.0750 / 1.0700 / 1.0650-30
The Support at 1.07 held and Swiss has risen sharply during the day. It is now trading just above 1.08 and is heading towards 1.0850-80 as expected. The 100-Week-MA (1.0837), which is the immediate Resistance seen which might be broken and the 21-Month-MA (1.0883) Resistance might be tested in the US session today. The current upside momentum is expected to continue and we might see a rise towards 1.0950 over the next few days. Remember 1.0940 is the 50% retracement level of the fall from 1.1965 (12-Mar-09) to 1.0075 (16-Nov-09).
Any sharp downmove is not looking likely and the Support at 1.07 is expected to hold in the US session today if a downmove is seen.
GBP-USD @ 1.5402/06...Bearish
R: 1.5480-94 / 1.5573-91
S: 1.5330-16 / 1.5234
The Cable has risen towards 1.5575 during the day and has faltered after the German IFO numbers came in to record a low of 1.5396. It is currently trading lower. The pair had rendered itself bearish after it broke below the long term channel Support at 1.55. We had mentioned in the morning that the Resistance at 1.56 should hold and the pair should then see a pullback toward 1.54-53, and so it did. There's Support at 1.5330 which should hold for the day and may lead to see some bounce towards 1.55. Overall, the pair looks bearish for 1.50 over the next few weeks.
AUD-USD @ 0.8994/98...100-DMA Resistance held
R: 0.9047 / 0.9072 / 0.9120
S: 0.8980 / 0.8930 / 0.8900-0.8880
The 100-DMA (0.9072) halted the sharp rise seen during the day breaking above the 21-Week-MA (0.9046) and Aussie fell sharply from the high of 0.9071. It is now trading below 0.90. The pair still continuing to remain pressured on the downside. Immediate Support is seen at 0.8980 a break below which might pull it down towards 0.8900-0.8880. As mentioned earlier we might expect the pair to be ranged between 0.8900-0.9050 for some time with a bearish bias.
Limit Sell Order:
Sell AUD 10K at 0.9045, SL 0.9135, TP Open
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