FX Thoughts for the Day

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Wed, Mar 10 2010, 12:36 GMT
by Kshitij Consultancy Service Team

Kshitij Consultancy Services | View company’s profile

FX Thoughts for the day : 10-Mar-2010 – 1219 GMT

EURO, JAP YEN and EURO-YEN
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Our comments on Dollar-Swiss, Sterling Pound and Australian Dollar are given below
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USD-CHF @ 1.0741/44…Holding long
R: 1.0802 / 1.0830-51 / 1.0886
S: 1.0722 / 1.0684 / 1.0650

Swiss touched a high of 1.0794 and has come down from there. We may see the pair test the immediate Resistance level at 1.0802 in the US Session today, but a break above it looks distant.

On the downside, 1.0722 is seen as the immediate Support level and may be honoured in the US Session today, however we see less chances of a break below it.

Overall, we see some volatility in the pair but the outer levels remain the same as mentioned in our Morning Comments ie 1.0722-1.0802.

Largely, it has been trading in the range of 1.0650-1.0890 for the last 3 weeks and we may see the pair move beyond this range in the sessions post the SNB Meeting, scheduled tomorrow.

Holding:
USD 10K Long @ 1.0730, SL 1.0625, TP open

GBP-USD @ 1.4925/28…Resistance at 1.50
R: 1.50 / 1.5050 / 1.5100-320
S: 1.4865-50 / 1.4800 / 1.4775

Cable fell in the Asian session today as expected and recorded a low of 1.4872. Though it has bounced back from its low, the continue to remain bearish and we might expect a test of the Significant Support at 1.4850 in the coming sessions. A strong break below 1.4850 might see further dip towards 1.4775.

Any sharp upmove is not looking likely now and we expect the immediate Resistance at 1.50 to hold. However, a strong break above 1.50 might increase the chances of a rise to 1.51.

AUD-USD @ 0.9159/62…Resistance near 0.9179-0.9200
R: 0.9179-0.9200 / 0.9231-42 / 0.9277
S: 0.9116-13 / 0.9089-63 / 0.9031-10

Aussie has appreciated in the European Session and may test the immediate Resistance region near 0.9179-200 in the US Session, still a break above this looks unlikely today.

We do not expect much downside but may see the pair test the immediate Support near 0.9132-03 region, though we have a lower weightage on this movement.

Essentially, we expect the movement within a range of 0.9132-9200 in the US Session today. Nevertheless, in coming weeks, we see the pair equipped for a rally towards 0.9350.

We have exited the long position entered @ 0.9107 with a profit of 58 pips.

Holding:
AUD 10K Long @ 0.9080, TSL 0.9110, TP open
As soon as the market trades 0.9180 bring TSL up to 0.9135.

Happy Trading!

Published on Wed, Mar 10 2010, 12:41 GMT