Thursday October 7, 2010 - 12:35:55 GMT
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FX Thoughts for the Day - www.fxthoughts.com
FX Thoughts for the day : 07-Oct-2010 - 1234 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 @ 0.9597/600...Holding short, may fall towards 0.9550-00
R: 0.9635-50 / 0.9700-20 / 0.9780-800
S: 0.9620-00 / 0.9550 / 0.9520-00
Dollar-Swiss touched a low of 0.9550 in the European session today and has recovered. We stil continue to hold our morning view on the pair today.
Dollar-Swiss went down to touch a low of 0.9599 in the US session yesterday, followed by some recovery. The pair has been moving down slowly over the past 4 days, and may continue to see some more fall in the coming days. The pair is currently trading above 0.9600 and we may now see some move in a small range of 0.9600-50, followed by another dip towards 0.9550-00 in the coming sessions over today and tomorrow. We may look to add on to our shorts on a rally, and would want to trail our stop at dips below 0.9600. The suggested max low for the day is 0.9520.
USD 10K Short at 0.9675, TSL 0.9665, TP Open
GBP/USD @ 1.5962/65...BOE packs a bull punch
In spite of a much larger than expected a drop in Halifax UK Home Price Index, 3.6 % m-o-m in September it is the BOE who got the cable bulls smiling. Even a better than expected manufacturing numbers helped the up trend. BOE did not go for a QE2 in their meeting and as
a result Dollar-Pound is now trading above 1.6 handle. It is the confluence of factors, which we were pointing out for the last two days, EUR-GBP approaching key resistance between 0.88-0.8850, a QE 2 positioning in cable and a soft dollar undertone, has helped Cable go beyond 1.60. Cable has support between 1.5910-5930; we are looking at 1.62 as the next target in the pair.
Buy GBP 10K at 1.5968, stop 1.5908, TP 1.61.
AUD/USD @ 0.9883/86...Buy dips
R: 0.9890 / 0.9979
S: 0.9750 / 0.9700 / 0.9630
Aussie touhed a high of 0.9917 in the European session today and is currently trading below 0.9900. In the coming sessions we may see the pair moving towards 0.9850-25 followed by another upmove towards 0.9950-1.00 tomorrow. Please note that the pair has now broken above the Chammel Resistance and there are chances of a strong upward movement in the next week. We may consider buying on dips for an eventual upmove on the pair in the coming days.
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