SwissUSD-CHF @ 0.9322/25...Bearish
R: 0.9300 / 0.9350 / 0.9410 / 0.9460
S: 0.9285 / 0.9240 /0.9120-00

As expected the pair was negative for the week loosing about 100 pips through the week. The pair opened with a gap up and since then slided down breaking below its channel support on the daily chart at 0.9385. it did try to move up basically on profit booking/short covering but faced stiff resistance at its channel resistance at 0.9400. For the coming week as well the pair is expected to be weak till it stays below 0.9300 though some chances of a bounce to 0.9385-400 still remain as it is above its 0.9285 weekly support. A break below this will take it lower towards 0.9240-00 and 0.9100 in the coming weeks. Momentum now seems to be picking up and a break below 0.9285 after a possible bounce to say 0.9350-85 or even immediately after some side ways movement can take it slower in a swift move.

Limit Sell Order
Sell USD 10K at 0.9360, SL 0.9430, TP 0.9225
CableGBP-USD @ 1.6107/10...Mixed, but likely to drift lower
R: 1.6160 / 1.6250 / 1.6300 / 1.6350
S: 1.6080 / 1.6000

The week was side ways for the pair but when looked in perspective with the way it has been trading from the past few weeks it is evident that it faced resistance at 1.6160 and could not close above for the week after trading above the same on the intraday basis. It seems more and more likely that the 1.6160 resistance will be held and it will not be able to cross 1.6300-50 and looks more bearish. A look at the weekly also tells us the same story as it has closed below its trend line at 1.6145 and now the down side is open for a test of 1.6050 and also 1.6000 in the coming days. The even bigger picture if considered is ranged 1.6300-5300 which also suggests and justifies a down move from current levels. Any move up is expected to face resistance at 1.6160 which if broken on a closing basis can only take it higher to 1.6250 but which is unlikely given the current picture.

AussieAUD-USD @ 1.0164/67...Bounce to 1.0275 first before a further fall
R: 1.0230 / 1.0275 / 1.0330 / 1.0375
S: 1.0165 / 1.0100 / 1.0000

The pair has been bearish for the week breaking below its supports of 1.0375 and crashing 200 pips through the course of the week after RBA announced a rate cut of 25 Basis Points. We have been mentioning that the pair is negative and can move lower as it has traced out a triangle pattern on the weekly charts, for the coming week we can see it moving up on short covering 1.0230 and 1.0275 from where it can resume it down move, the momentum seems to be picking up and any move in the direction of the trend is expected to be swift which can take it lower towards 1.0100 and 1.0000 but only after a bounce to 1.0270 is seen. The bigger picture is bearish and any rally should be used to sell the pair for a down side of 1.0100-000.

Happy Trading!


This report has been prepared by Kshitij Consultancy Service. For more, go to Kshitij Consultancy Service