|USD-CHF @ 0.9409/12...Bearish, Sell on rallies|
|R: 0.9400 / 0.9460 / 0.9510|
S: 0.9375 / 0.9300 / 0.9250 / 0.9120
The pair throughout the week did not move in either direction but was did test its resistance of 0.9400 (200 EMA) a few times and as expected moved lower, its weekly range being 0.9330-410. The pair in the middle of the bigger bearish trend has been moving up after making a low of 0.9250on short covering and looks sell on rallies to 0.9400 and 0.9460 with descent stops as we expect the pair to start moving lower soon. It has been taking good support on its trend line on the daily charts at 0.9375 which looks good to be broken eventually opening the down side for the test of 0.9300-0.9250 and even 0.9120 cannot be ruled out. The momentum has not been great but can be seen increasing if it manages to break its supports of 0.9350-00. The upside move seems unlikely now as it is giving good respect to its 200 EMA (0.9400) on the daily charts, 9400 also happens to be its trend line resistance on the weekly charts, which if crossed the rise should be capped at 0.9460 (trend line resistance on the daily), we would advise to keep descent stops.
USD 10K Short at 0.9395, SL 0.9440, TP 0.9325
Limit Sell Order
Sell USD 10K at 0.9490, SL 0.9540, TP Open
|GBP-USD @ 1.6136/39...Bearish below 1.6160-50|
|R: 1.6270 / 1.6300 / 1.6370|
S: 1.6150 / 1.6080 / 1.6000
The pair moved in the 1.6250-160 range for the whole weak, it did show some sign of momentum on Friday but a convincing break could not be observed. Looking at the weekly charts it gives a hint that the bigger 1.6300-5300 range has still not been broken, having said that the pair need not go all the way down to 1.5300 but it might not break 1.6300 and move towards 1.6380-6500 might as well have to wait. The closing for the week has been below 1.6160 but a the margin of break is not convincing enough, still we would put more weight on it going lower towards 1.6080 while it stays below 1.6160 and further towards 1.6000. So the immediate term out look is negative below 1.6160-50, hence a down move first is what is on the cards. The momentum has been weak on the daily charts which can pick up on the break of 1.6160-50.
Limit Sell Order:
Sell GBP 10K at 1.6250, SL 1.6320, TP 1.6060
|AUD-USD @ 1.0356/59...Can break lower this week|
|R: 1.0400-30 / 1.0480 / 1.0560-70|
S: 1.0370 / 1.0335 / 1.0230
The pair moved in the 1.0430-330 range for the weak and closed below 1.0430-00 confirming the down move towards 1.0230 and further to 1.0000. Even though a bounce from its 50 (1.0370) and 100 EMA (1.0335) towards 1.0570 cannot be ruled out which would be a good level to go short in the pair. The pair has been giving false breakouts which are making it difficult to trade and to put stop losses as they are sure to get triggered. Hence a down move is advised to be traded on a strong break of its 50 (1.0370) and 100 EMA (1.0335) which can open doors for 1.0230 and 1.0000 as mentioned earlier. Momentum looks to be picking up on the daily charts which suggest good moves coming in the coming days which are sure to break it supports.
Limit Sell Order
Sell AUD 10K at 1.0580, SL 1.0650, TP 1.0440
This report has been prepared by Kshitij Consultancy Service. For more, go to Kshitij Consultancy Service