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FX Thoughts for the day - Evening - 25-Jul-2006....1217 GMT
$-Swiss @ 1.2451/6...Buy dip viable R: 1.2464 / 1.2491 S: 1.2421 / 1.2400 / 1.2371 $-Swiss dipped to a low of 1.2421 during the day but has bounced a bit from there. Now this low has become an important Support for the day. Further Supports 1.2400 and 1.2371, the latter lying on a trendline on the daily, joining the lows of 1.2187 (7-July-06) and 1.2348 (23-July-06). While the market trades above 1.2425-00, the focus may shift towards the upside, targeting 1.2517. Before that, Resistances at 1.2464 and 1.2491 would have to be broken. A buy on a dip towards 1.2400-2390 is still a viable option. Cable @ 1.8490/5....Evenly keeled R: 1.8540 / 1.8600 S: 1.8445 / 1.8400 The Cable was volatile today as it first dipped to a low of 1.8445 and then rallied to a high of 1.8540. These levels probably form the boundaries for the rest of today’s trade and a move beyond these two levels may result in a directional move. On the downside a break below 1.8445 could see the Cable testing 1.8400 while a rally above 1.8540 could see it testing 1.8600. Overall, the market seems to be evenly keeled between 1.84 and 1.86. Buy dips and sell rallies for now. Aussie @ 0.7555/60...Look to buy dip R: 0.7569-77 / 0.7602 S: 0.7543/ 0.7523-14 The Aussie has traded below the critical Resistance at 0.7569-77 during the day (as expected in the morning). Now a move above that is required to enable further gains towards 0.7602, the statistically projected Max High for the day. A move above 0.7569-77 may also be bullish for the week as then the pair may target 0.7650. On the downside, for the day, the Supports are coming in at 0.7543 and then at 0.7523-14. It might be worthwhile to buy on a dip to 0.7545-35 (if seen) for a rally over today or tomorrow. Happy Trading!