Wednesday October 13, 2010 - 12:26:44 GMT
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FX Thoughts for the Day - www.fxthoughts.com
FX Thoughts for the day : 13-Oct-2010 - 1224 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 @ 0.9560/63...Nearing Support
R: 0.9610-20 / 0.9665 / 0.9750
S: 0.9500 / 0.9467-50 / 0.9392
We continue to hold our morning view on the pair today.
Dollar-Swiss touched a high of 0.9728 in the European session yesterday, followed by a dip below 0.9600 in the US session yesterday and the Asian session today. The pair is may again see Support in the 0.9500-450 region which may
or may not hold. If the Support holds, the pair may see another upmove towards 0.9600-50, however, if it is broken, we may see a sharp fall towards 0.9350-00 over today or tomorrow.
GBP-USD @ 1.5842/45...Ranged with bullish bias
R: 1.5850/15960 / 1.6020
S: 1.5800-20/1.5720-50 / 1.5660.
Just as we thought, a soft reading on employment for UK coupled with a better than expected Industrial data from EU is more or less penciled the trend for the day. A short dollar trade will continue flow through a long Euro and short GBP play. Therefore, reiterating what we said in the morning "a sustained rally in cable looks possible only on the heels of a significant appreciation in Euro". Support for the pair comes around 1.5800-5820 zone and resistance around 1.59 handle.
Holding 100K GBP with SL at 1.5690, TP 1.5970
Limit Buy Order:
Buy GBP 10K at 1.5750, SL 1.5680, TP Open
AUD/USD @ 0.9887/90...Bullish with some hurdles
R: 0.9929 / 1.00 / 1.01
S: 0.9820-10 / 0.9750 / 0.9670-50
Aussie moved up to touch a high of 0.9905 in the European session today but is currently trading below the 0.99 figure. There are slight chances that the pair may come down towards 0.9840-20 from these levels; in case that happens, we have another buy order at 0.9820. Else, this upmove on the pair may well take it towards 1.00-01 in the coming sessions over the next couple of days.
We see less chances of any deep fall on the pair immediately. Though, we may see the markets come down towards 0.9900-850 after reaching /crossing parity.
Limit Buy Order:
AUD 10K Long at 0.9830, SL 0.9740, TP Open.
AUD 10K Long at 0.9780, TSL 0.9850 (up from 0.9790), TP 1.0080
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