Wednesday February 7, 2007 - 13:24:48 GMT
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FX Thoughts for the Day - www.fxthoughts.com
FX Thoughts for the day - Evening - 07-Feb-2007....1251 GMT
EURO, JAP YEN and EURO-YEN
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Our comments on Dollar-Swiss, Sterling Pound and Australian Dollar are given below
$-Swiss @ 1.2403/07...Holding Long
R: 1.2424-30 / 1.2460
S: 1.2377 / 1.2349 / 1.2329
$-Swiss tried to rally during the day and it hit a high of 1.2424, but has again fallen down as the selling has resurfaced. Currently the pair is near the 200-MA on the 4-Hourly of 1.2400. Below this the major Support is at 1.2349, the 200-MA on the daily. While the pair is maintaining above 1.2349 on a closing basis, the pair would remain in its trading range of 1.2370 and 1.2570 (with a possible extension of the range by 10-20 pips to the downside).
In between 1.2400 and 1.2349, we also have Support at 1.2376 (Low on 02-Feb). If that is broken then there could be a fall towards 1.2349. The statistically projected Max Low for the day is at 1.2329. On the upside the Resistance is at 1.2424-30. If that is crossed then there could be a rally towards 1.2460-70. We are holding a long currently hoping that the 1.2376 Support will hold.
$25K Long at 1.2430, SL 1.2360, TP 1.2510. As soon as the market trades 1.2430 hereafter bring SL to 1.2390
Cable @ 1.9710/15....Resistance at 1.9750
R: 1.9750 / 1.9780 / 1.9816
S: 1.9673-70 / 1.9640 / 1.9600
The Cable has retained a bullish bias during the day and looks to be headed towards 1.9750, the upper end of its current range of 1.9750 â€“ 1.9480. It is expected to face strong Resistance at 1.9750, which could push the market back down towards 1.9700.In case the 1.9750 Resistance is broken the there could be a rally towards 1.9780 or 1.9816, the statistically projected Max High for the day. On the downside the Support is at 1.9673 (low for the day so far). If that is broken then there could be a fall towards 1.9640 or 1.9600. The pair could stay sideways today, but there could be a big movement tomorrow after the BOE interest rate is declared. Take a look at the BOE/ Libor chart at
We would advice caution on the pair while it is trading below 1.9750.
Aussie @ 0.7777/81....Buy a dip
R: 0.7800 / 0.7824
S: 0.7760 / 0.7740 / 0.7729
The Aussie has traded with a bullish bias during the day and it seems to be attempting a breakout from its recent trading range of 0.7773 â€“ 0.7700. A Close above 0.7773 today would act as a confirmation of a breakout. If so, there could be a rally towards 0.7800 or 0.7824, the 200-MA on the 4-Hourly over the next couple of days. The Aussie Labour Force data coming out tomorrow morning at 00:30 GMT. (See chart at
On the downside the Support is at 0.7760 and then at 0.7740, which are expected to hold for the day. The statistically projected Max Low for the day is at 0.7729. The pair is a good buy on a dip candidate currently.
Limit Buy Order:
Buy AUD 20K at 0.7755, SL 0.7725, TP open. As soon as the market trades at 0.7780 after Entry bring SL to Entry
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