USD-CHF @ 0.9133/36...Ranged with bearish bias
R: 0.9200 / 0.9250-60 S: 0.9110 / 0.9075-58
Dollar-Swiss is continuing to find Resistance near 0.9250. The 21-Month-MA (currently at 0.9261) held well last week. However, the break below 0.9100 did not extend strongly further on the downside and the pair bounced back sharply from its low of 0.9089. On the downside 0.9058 will be an important Support level to be watched for the week. The pair needs to see a strong break below this Support for further downmove to happen. Last two weeks candles are suggesting sideways move for the pair. However, the monthly and the weekly charts on the whole are still looking week broadly and a strong break below 0.9058 could trigger further sharp fall to 0.8900-8850.
Limit Sell Order: Sell USD 10K at 0.9250, SL 0.9330, TP 0.9065
Trade ideas for the week: 1) Sell on a break below 0.9058.
GBP-USD @ 1.5785/88...Good Support in 1.5700-5650 region
R: 1.5800 / 1.5929 S: 1.5700-5978 / 1.5650
Cable tested its 200-DMA Resistance (currently at 1.5924) and has come off sharply from its high of 1.5929 last week. There is good Support near 1.5700 and then significant Supports seen at 1.5678 (21-Week-MA) and then at 1.5642 on the monthly chart. Having said this the current downmove can extend further to 1.5650 this week if it fails to rise past the immediate Resistance at 1.5800. The chances of further fall below 1.5650 will have to be seen. We expect this Support at 1.5642 to hold in its first test and a bounce back to 1.5750-5800 is possible from there. Also the bounce back move can extend further to test the 200-DMA Resistance once again. 1.5800 will be an important level to be watched for. A strong rise past this level is now needed to ease the downside pressure and a failure to break above this Resistance would increase the downside pressure on the pair.
Limit Buy Order: Buy GBP 10K at 1.5655, SL 1.5575, TP 1.5780
AUD-USD @ 1.0737/40...Support at 1.0600-580
R: 1.0700 / 1.0735-50 / 1.0800-25 S: 1.0600-580 / 1.0550 / 1.0500
Aussie saw an intraweek break above its important 1.0735-50 Resistance region following the surprise move by the RBA to leave the rates unchaged against the market expectation for a 25bps cut. But, however, it failed to see a strong rise past 1.0800 and fell sharply from its high of 1.0844. Now it has bounced back well above 1.0700 once again easing the downside pressure. Immediate Resistance is seen a 1.0770 and a failure to rise past this Resistance could keep the pair pressured on the downside adn the downmove can extend further towards 1.0600-580 on a break below the immediate Support in 1.0700-680 region. Note that the 21-DMA Support is currently at 1.0604. We expect a bounce back from this near 1.0600. On the other hand, if a strong break below the 21-DMA is seen during the week, then the downmove can extend further to 1.0550-00. We will have to wait and see.
Trade ideas for the week: 1) Watch 1.0600-580 Support region and buy into the bounce. Happy Trading!