Currency Daily Update

GBP USD

DAILY CHART (17-09-2007)

COMMENTS: (GBP USD - 2.0074) Cable retraced to the extent of 2.0060 levels, a little more than 38.2% in Friday’s session. The daily stochastic which was overbought has also corrected and is now in the oversold territory. Cable is currently trading close to the support zone of 2.0080 levels (100 Days EMA and 38.2% Retracement). The overall outlook remains bullish as long as Pound holds above 2.0038 levels (minor support). Breaking of this level can push cable to 1.9920 levels.

Be cautious as the UK market sentiment is slightly weak due to the aggravating Sub-Prime Crisis.

STRATEGY: Initiate long positions only if Pound holds above 2.0040 levels with a target of 80-100 pips and stop below 1.9900.

Technical Summary:

Resistance 2: 2.0270
Resistance 1: 2.0145
Support 1: 2.0040
Support 2: 1.9920

EUR USD

DAILY CHART (17-09-2007)

COMMENTS: (EUR USD - 1.3878) Euro after accelerating to the extent of 1.3927 last week, is currently holding firm above the 1.3840 levels (resistance turned support). The overall outlook remains bullish for Euro. However, as the daily stochastic is showing bearish divergence and correction to the levels of 1.3840 is expected before we witness another rally.

STRATEGY: Look for opportunities to go long around 1.3840-45 with a target of 50 pips and stop below 1.3750.

Technical Summary:

Resistance 2 1.4000
Resistance 1: 1.3927
Support 1: 1.3840
Support 2: 1.3780

AUS USD

DAILY CHART (17-09-2007)

COMMENTS: (AUS USD - 0.8449) AUS USD continues to trade above the major support zone formed by the 55 Days and 100 Days EMA around 0.8340 levels. The outlook is clearly bullish for Aussie. Staying above the support zone can take Aussie to the levels of 0.8500. Although the daily charts have moved to the overbought region, it has flattened and is further signaling a bull run for Aussie.

STRATEGY: Look for opportunities to initiate longs around 0.8420 with a target of about 50-60 pips and stop below 0.8320.

Technical Summary:

Resistance 2: 0.8660
Resistance 1: 0.8500
Support 1: 0.8340
Support 2: 0.8235

USD CHF

DAILY CHART (17-09-2007)

COMMENTS: (USD CHF - 1.1882) CHF weakened to the extent of 100 pips intraday in the last trading session. However, the overall outlook remains bullish as CHF is holding below 1.1935 (38.2% Fibonacci of the recent fall). Breaking of 1.1800 on the downside can make CHF challenge the lows of 1.1740 and further. The stochastic is also changing direction indicating to sell the pair.

STRATEGY: Look for opportunities to short around 1.1895 with a target of 50-60 pips and stops above 1.1975.

Technical Summary:

Resistance 2: 1.2012
Resistance 1: 1.1935
Support 1: 1.1800
Support 2: 1.1734

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