Monday October 18, 2010 - 12:34:46 GMT
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FX Thoughts for the Day - www.fxthoughts.com
FX Thoughts for the day : 18-Oct-2010 - 1233 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 @ 0.9604/07...Chances of some upmove, wait and watch
R: 0.9650 / 0.9680-90 / 0.9750
S: 0.9539-20 / 0.9467-50 / 0.9392
Dollar-Swiss is in the middle of a possible upmove towards 0.9700-50 in a couple of days. The pair tested a Support at 0.9472 last week, followed by an upmove towards 0.9650 today. Please note that 0.9472 is a very significant Support on the pair, a break below which may see 0.87 in the coming weeks/month. Since the markets have honoured this Support last week and moved up, there are chances of a upmove towards 0.9700-800 before the pair sees another sharp fall. Though, if we do not see this rise, we may consider selling on dips below 0.9450. Currently, we would want to stay away.
GBP-USD @ 1.5899/902... Sideways...
Dollar rally knocks cable into the belly of the support cluster around 1.5850. Cable after making alow of 1.5835 has clawed back towards the 1.59 handle. Inspite of a reports of ECB President rejecting the call from Axel Weber,President, Bundesbank, to end the bond pruchase program. We have been saying this we re-itereate, as long as global risk appetite is intact, we see Euro outperforming cable.Our technical view remaians the same as morning.
"Except for BOE minutes, a data light week for Cable traders and yo-yo will be governed largely by the overall trend in the Dollar. Expected late last week sell-off suggests that we could see cable fade towards a support cluster between 1.5870-1.5850 and resistance is expected around 1.5980-1.60. Though further QE measures look likely but BOE can shed light as to whether unanimity has emerged or not. Primary trend remains bullish as long as cable can stay afloat above 1.5750.".
Long 10K GBP @ 1.5770, stop 1.5700, TP 1.5900.
AUD/USD @ 0.9846/49...Buy dips
R: 0.9910-30 / 1.00 / 1.01
S: 0.9800-10 / 0.9750 / 0.9670-50
As expected, Aussie moved down to touch a low of 0.9801 in the European session today. We missed our long order by 1 pip. In the coming sessions today, we may see the pair move up towards 0.9900-20 followed by another dip towards 0.9850-40 tomorrow, where we may again consider buying for a rise towards 0.9950-1.00, this week.
Limit Buy Order:
AUD 10K Long at 0.9800, SL 0.9710, TP Open.
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