Friday June 4, 2010 - 12:08:53 GMT
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FX Thoughts for the Day - www.fxthoughts.com
FX Thoughts for the day : 04-Jun-2010 - 1207 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 @ 1.1555/58...Support at 1.1420-00
R: 1.1570-1.16 / 1.1635-50 / 1.17
S: 1.1500-1470 / 1.1420-00 / 1.1370
Dollar-Swiss fell sharply during the day breaking below 1.15 and recorded a low of 1.1417. However, it has bounced back from its low and it now trading once again above 1.15. The 21-DMA (currently at 1.1423) has held during this sharp fall, thereby keeping the overall bullish sentiment intact. The US NFP data is due today which will be watched closely by the market. A break below 1.15 might pull it down once again towards 1.4220-00 which is a significant Support region seen on the downside and we expect it to hold in the US session today.
We booked a profit of 168 pips from the Short positions entered at 1.1508 and 1.1570.
GBP-USD @ 1.4577/80...Significant Support in the broad 1.4500-4450 region
R: 1.4620 / 1.4670 / 1.4720
S: 1.4500 / 1.4450 / 1.4350
As expected, Cable failed to see a strong break above the Resistance at 1.4670 and fell sharply from the day's high of 1.4682 towards the 21-DMA. If it continues to trade below 1.46, we might see further dip towards 1.4500-4450 in the coming sessions. This 1.4500-4450 is a very important Support region seen on the downside. If it holds a bounce back once again towards 1.46 can be seen. On the other hand a strong break below 1.4450 might increase the chances of revisiting 1.43-42 on the dowside once again.
AUD-USD @ 0.8384/87...Immediate Support at 0.8360-50 region
R: 0.8430 / 0.8470 / 0.8510
S: 0.8360-50 / 0.8290 / 0.8220-00
Aussie failed to continue with its upmove seen during the day and fell sharply from the high of 0.8477. As mentioned earlier 0.8360-50 is the immediate Support region seen and a strong break below it might increase the chances of further dip to 0.82 in the coming sessions. However, if this Support at 0.8360-50 holds we might see a bounce back once again towards 0.8450-70. However, the broader picture continue to remain bearish.
AUD 10K Long at 0.8430, SL 0.8360 (up from 0.8340), TP 0.8450 (down from 0.8480)
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