SwissUSD-CHF @ 0.9726/29...Might fall to 0.9600

R: 0.9750-75 / 0.9830
S: 0.9670 / 0.9600 / 0.9530-00

Dollar-Swiss is continuing to trade lower. The broader bearish outlook remains intact with strong Resistance in 0.9750-70 region. We might see a fall towards 0.9600 in the coming sessions. A break below 0.9600 would see further downmove towards 0.9530-00.

Holding:
USD 10K Short at 0.9745, SL 0.9835, TP Open
As soon as the market trades 0.9670 trail SL to 0.9735 and as soon as the market trades 0.9640 there after bring TSL further down to 0.9695.

CableGBP-USD @ 1.5608/10...Bearish

R: 1.5630-60 / 1.5730-50
S: 1.5580 / 1.5450 / 1.5400

Cable failed to see a strong break above its Resistance at 1.5660 and has come off sharply from its high of 1.5682. It is now trading just above its intermediate Support at 1.5580. We might see a break and downmove below this Support towards 1.5500-5450 in the coming sessions. The broader outlook is bearish. 1.5400-5350 is a very important Support region to watch for on the downside and a strong break below 1.5350 might see fresh downmove towards 1.5100 in the coming days/weeks. On the upside Resistance in 1.5630-60 region is expected to continue to hold incase a bounce back is seen in the US session today.

Holding:
GBP 10K Short at 1.5640, SL 1.5730, TP Open
As soon as the market trades 1.5550 trail SL to 1.5630 and as soon as the market trades 1.5510 thereafter bring TSL further down to 1.5610

AussieAUD-USD @ 0.9889/92...Recovering

R: 0.9930/0.9985-65 / 1.0030-50
S: 0.9800/0.9725 / 0.9665

Floods continue to ravage Australia, as more rains are expected over the week. Floods could cost nearly 1 percentage point of GDP for Australia. However, we do not believe floods could change the medium-long term growth dynamics of a country like Australia. Damages suffered by Australia will get more or less reversed when post-flood reconstruction will see construction activity and government spending giving a boost to GDP in the coming months. This is somewhat like what happened to US GDP once rebuilding got underway post hurricane Katrina and Rita in 2005-06. Therefore, to us Aussie dollar remains a high beta play on animal spirits of the market. Though, the market concensus calls for 2011 to be another good year for risk on trade but we must warn our readers that we are starting to see some early signs of risk-off environment. More about that in our future updates.

Technically speaking, Aussie-dollar is well posied to rebound towards parity. Our view remains bullish as long as the 97 handle is intact. Resistance is expected closer to parity. Support to be had around 98 handle.

Holding:
AUD 10K Long at 0.9845, SL 0.9755, TP Open

Limit Buy Order:
Buy AUD 10K at 0.9815, SL 0.9750, TP Open
Happy Trading!