ust a quick update to yesterday’s thoughts & charts
The euro rallied well over 1.3850 today as Jean-Claude Trichet said that policy makers may soon hike interest rates to fight inflation. We are currently trading 40 points away from $1.40 and there’s no sign of exhaustion. However, I doubt we’ll see a break above 1.40 before the NFP – but a weekly close above 1.3850 is quite possible. My plan to buy at 1.3850 earlier today worked well and the position is at +100 pips right now. I will look to close half if price pulls back towards 1.3930 and let the other half open with stop at break even point.
- EURUSD daily chart 3-3-2011
The dollar recovered against the Swiss franc following EURCHF. As I mentioned yesterday – the chart was screaming for a reversal and we have it. Let’s see now how price reacts on reaching the former support line at .9330.
- USDCHF daily chart 3-3-2011
- AUDUSD daily chart 3-3-2011
- AUDUSD 4hrs chart 3-3-2011
This trendline connecting the higher lows since October 2010 was quite strong so far and the bounce today was a good opportunity to play a potential reversal scenario. In case you are wondering why the USDJPY rallied – take a look at EURJPY and you’ll get the answer.
- USDJPY daily chart 3-3-2011
The daily chart looks more interesting today as the dollar declines below the rising trendline – suggesting that the whole consolidation cycle starting around January 20 was a bear flag pattern. It looks very bearish…
- USDPLN daily chart 3-3-2011
Another chart worth watching is the EURJPY. Some of you probably know that I’ve been waiting for the 115 test since two weeks ago and right now I expect more upside to be seen.
- EURJPY weekly chart 3-3-20111