Friday October 22, 2010 - 12:16:03 GMT
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FX Thoughts for the Day - www.fxthoughts.com
FX Thoughts for the day : 22-Oct-2010 - 1214 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 @ 0.9709/12...Bullish
R: 0.9772 / 0.9792-800 / 0.9850
S: 0.9675 / 0.9600 / 0.9567
Dollar-Swiss broke above the 21-DMA Resistance (0.9682) in the European session today, stopping us out of our short with a loss of 44 pips. The pair moved up, tested the Suggested the max high for the day (0.9772) followed by dip below 0.9750. In the coming sessions today, the markets may see some fall towards 0.97. Though, a weekly close above 0.97 will be bullish for the pair. Please note that the pair honoured a strong Support at 0.9475 last week and has continued its upmove this week also. A move above 0.97 will be a break above the channel Resistance on the weekly charts, holding from past 10 weeks, which may see an upmove towards 0.99-1.00 in a couple of weeks.
GBP-USD @ 1.5712/15... Recover towards 1.58
S: 1.5680 / 1.5640/1.5550.
Good numbers from IFO in Eurozone is causing some dollar selling, and cable, having fallen tantalisingly close to 1.5640, break-down zone, has now recovered above 1.57 handle. Keeping in mind the breakdown level of 1.5640, we are eager to play the long side not only because it is bouncing from an important support cluster of 1.5640-1.5680 but also becauserisk-reward is favourable. At the same time, Euro-Cable, a pair we advocate cable watchers to track, is on a trendline resistance.Therefore, if the short dollar trade were to resume tonight, we expect cable to benefit more out of it. If cable were to trade below 1.5640, we expect 1.55 to be on offer.
AUD/USD @ 0.9824/27...May see some rally followed by a dip
R: 0.9850-9890 / 0.9950 / 1.00
S: 0.9800 / 0.9760 / 0.9710-00
Aussie has touched a high of 0.9854 in the Eurpoean session today, followed by another downmove towards 0.9800. In the US session today, there are chances of some sideways movement on the pair followed by a weak closing. In the broader picture, please note that the pair has not broken above the Resistance region near 0.9850-900 and hence the chances of a fall towards 0.95-94 can not be ruled out, in case of a weak weekly close on the pair today.
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