Tuesday May 18, 2010 - 12:15:13 GMT
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FX Thoughts for the Day - www.fxthoughts.com
FX Thoughts for the day : 18-May-2010 - 1213 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 @ 1.1289/94...Might dip to 1.12 before further rise
R: 1.1345 / 1.14 / 1.1470-95
S: 1.1275-60 / 1.1190-65 / 1.1120
Dollar-Swiss has come off from yesterday's high of 1.1446 and is now trading just below the 200-Week-MA (1.1297). If it continues to trade lower we might see further downmove towards 1.12-1.1180 in the coming sessions. However, the broader picture continues to remain bullish and we might expect a bounce back from 1.1200-1.1180 region.
On the upside the 55-Month-MA (currently at 1.1493) is a very significant Resistance to watch for and a strong break above it might take it further up towards 1.17-18.
Limit Buy Order:
Buy USD 10K at 1.12, SL 1.1110, TP Open
GBP-USD @ 1.4468/71...Resistance at 1.4530
R: 1.4500-30 / 1.4580 / 1.4680
S: 1.4350-35 / 1.43 / 1.4230-00
Though Cable is continuing to trade above 1.4350, it has not witnessed a strong break above the Resistance at 1.45 mentioned earlier. Notet that the high recorded today is 1.4520. The 21-MA on the 4-hr chart (currently at 1.4530) is the significant immediate Resistance seen on the upside and a strong break above it might increase the chances of further rise to 1.4700-50 in the coming days. However, the broader picture continue to remain bearish and we might see a pull back from this 1.4700-50 region once again.
On the other hand, if the pair fails to see a strong break above the immediate Resistance at 1.4530, we might see a dip once again towards 1.43-42 in the coming sessions.
AUD-USD @ 0.8765/68...Might break the Support at 0.87 and dip further
R: 0.88 / 0.8855 / 0.8880-0.89
S: 0.87 / 0.8645 / 0.8595
The crucial Support at 0.87 mentioned earlier, is continuing to hold. However, Aussie is not showing much strength on its upmove and is beeen ranged between 0.87-0.88. Moreover, we have witnessed the 13-DMA crossing over the 200-DMA from the top and also the 21-DMA is about to cross-over the 100-DMA which adds further fuel to the prevailing downside pressure. Overall the current downmove is expected to continue and we might expect a break below 0.87 in the coming sessions which might pull it further down towards 0.85.
On the other hand a strong break above 0.88 might take it up towards 0.89.
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