R: 1.1409-29 / 1.1443 / 1.1486
S: 1.1322-02 / 1.1213-190 / 1.1146
Swiss did take Support at 100-week MA (at 1.1313) and has bounced since then. It may make attempts to breach this Support once again during the US session and if successful could possibly move rapidly towards 1.12 initally and 1.11 thereafter over the next few sessions.
However if the Resistance at 1.1448 (21-week MA) doesn't hold, a rise towards 1.1528 is possible when the rise might be contained by the flattening 13-week MA.
Cable GBP-USD @ 1.4074/79...Took Resistance at Max High for the Day
R: 1.4232-43 / 1.4311 / 1.4350
S: 1.3983 / 1.3924
Cable continued to rise and was stopped when it touched the Projected Max High for the day. Till it stays above the 8-day MA at 1.4102, a re-test of the Projecte Max High looks possible. It also coincides with the trendline Resistance that we had mentioned in the morning. To see the chart of Cable, click on: http://www.kshitij.com/graphgallery/gbpcandle.shtml#candle
In the longer term, at present level, the pair has good Support on the monthly charts which we have been mentioning for quite sometime. A monthly close below this level could be very bearish which could take the pair towards 1.29. To see the chart of Cable, click on: http://www.kshitij.com/graphgallery/gbpmth.shtml#mth
Vols continue to be higher and once again seem to be inching towards the high seen in the end of Nov '08.
Aussie AUD-USD @ 0.6616/20...Ranged prior to RBA Meet next week
R: 0.6705-682 / 0.6736 / 0.6790
S: 0.6615-591 / 0.6573-64 / 0.6259-25
The range mentioned in the morning was breached marginally as the pair recorded 0.6720 to breach the range of 0.65-0.67 and has since then been trading lower as it looks well set to move towards the lower end of the range.
Aussie could possibly be ranged in the early part of this week prior to the RBA meet scheduled early next week when good amount of volatility could be seen in the pair with good chances of the pair dipping towards 0.63 as investors might take the pretext of 'flight to safety' coupled with rate cut expectations.
Options volatilities for 2-M maturities though have cooled off quite a bit from the high of 40.25% as at end of Oct 2008 to sub-30 levels currently but is still pretty high compared to the levels seen in August when it was trading in the range of 8-13%. This is expected to further shoot up towards 35% levels as the RBA meet approaches.