Nothing much happened in in the market during the day as everyone would be waiting for the outcome of the Fed meeting later today. With no signifcant movement seen our view on the market remains the same as in the Morning and we are repeating the same now as well.
|USD-CHF @ 0.9761/64...Can be range ahead of the FOMC|
R: 0.9800 / 0.9850-60 / 0.9900
The pair came down yesterday to make a low of 0.9737 and bounced back from here well before its support of 0.9820 showing the inherent strength in the pair. The up trend in the long term is still intact and we can expect it to continue. The pair has immediate resistance 0.9800-10 which if broken will open doors for 0.9850-60 which can be expected to give a significant resistance to the pair. While below 0.9800, the pair can move down to 0.9720 which is 200 EMA on the four hourly charts. Today we have the FOMC meet which suggests that before it the markets can be range bound and post the FOMC we can see some volatile movement.
|GBP-USD @ 1.5628/31...Stands at support and can move lower|
R: 1.5680 / 1.5735-50
The pair as said earlier is in a broad range of 1.5420-1.5700 and now has started moving lower from the upper end of the range and we can expect the weakness to continue and more over the pair has broken its short term range of 1.5735- 1.5680 on the down side which also suggests the impending weakness in the pair. We can expect the pair to move lower from here and a break of 1.5620-00 can take the pair lower towards 1.5540-00 which would be towards the lower end of the broader range. On the upside the pair has good resistance at 1.5680 and the upside is capped till the time pair stays below this resistance. A break of 1.5680 can take the pair to 1.5730-50 .
|AUD-USD @ 1.0522/25... Can take resistance at 1.0530-40 and came retreat to lower levels again|
R: 1.0525-35 / 1.0570 / 1.0640
As mentioned yesterday the pair took resistance on its trend line in the four hour charts at 1.0530-40 and has come down from there. But however, it could not move much lower as it is finding support at 1.0470-60 region and is bouncing back. The over all up trend is intact and the pair is definitely a buy on dips and we would be waiting for once such dip with a descent risk reward ratio to ride the wave. If the pair breaks of 1.0470-60 can take the pair lower towards 1.0430-00 in the immediate term but which does seem difficult at this point of time. We can expect the pair to move side ways at least till the FOMC today.