USD-CHF @ 1.0699/0701...Another test of Support

R: 1.0726-40 / 1.0775-89 / 1.0810
S: 1.0653 / 1.0630 / 1.0594-80

After the pair moved down from the 89-period exponential MA band (of the Highs and Lows) in the 1-hourly charts (as explained in the morning edition) by breaking the floor of 1.0690, it came close to yesterday's Low of 1.0652 as it made a similar Low of 1.0656 for today. Buying is being observed at this Support zone, as long wicks or shadows are being formed on the lower side of the candlesticks. A boost up from this level can carry the USD immediately to 1.0690-1.0700 and further to 1.0726-40.

If however this floor at 1.0653 is broken, the weakening of USD against another safe haven currency CHF may continue till 1.0630.


USD 10K Long at 1.0660, SL 1.0630 (up from 1.0580), TP 1.0750 (down from 1.0800)

Cable GBP-USD @ 1.6501/04...Watch out for a break above 1.6600

R: 1.6550-60 / 1.6600 / 1.6681
S: 1.6482 / 1.6446 / 1.6374

Cable continued to trade above 1.6500 during the day and rose slightly and tested the Resistance region 1.6550-60 mentioned earlier. The pair has fallen and is trading near 1.6500. If the pair continues to trade above 1.6500, we may see a rise once again towards the Resistance region 1.6550-60 in the US session today. A break above this Resistance region might take the pair up towards 1.6600 (upper end of the range 1.6200-6600). We see more chances of a break above 1.6600, the upper end of the range (1.6200-6600) this time for the following reasons.

1) The pair has been trading above 1.6300 for the last one week.

2) The pair has not broken below the 21-DMA (currently at 1.6374) for the last three days.

A break above 1.6600 might see a rise towards 1.6700-6750. However if the pair is to retain the range, we might see a pull back from 1.6600.

On the downside immediate Suppport is seen at 1.6482 (21-MA on the 4-hr chart) a break below which might see it testing the next significant Support seen at 1.6446 (55-MA on the 4-hr chart). A break and further move down below this 55-MA might see a dip towards the 21-DMA (currently at 1.6374).

Aussie AUD-USD @ 0.8302/04...At Resistance

R: 0.8332 / 0.8360 / 0.8442
S: 0.8208-0.8191 / 0.8160-73 / 0.8108

The pair continued to move up after taking Support from the rectangle's target at 0.8289-0.8301 as it made a High of 0.8337. It has been consolidating near 0.8330 for a couple of hours now as it is deciding which direction to take. If it breaks on the upside from 0.8332, it can touch 0.8360 or even 0.8442 however, as we said in the morning, Aussie now is protected from falling by Resistance-turned-Support lines at 0.8208 and 0.8160 levels.

Earlier we had got stopped out of the Long at 0.8290 thus bagging 22 pips.

Market Trade (at the time of writing):

Buy AUD 10K at current levels, SL 0.8267, TP 0.8350

Limit Buy Order:

Buy AUD 10K at 0.8290, SL 0.8190, TP 0.8400