Euro Continues to Fall; Some Charts That Matter Today

Article originally published on innerfx.com and republished here with permission

Quote of the day: “When you have only two pennies left in the world, buy a loaf of bread with one, and a lily with the other.” ~ Chinese Proverb

Hello. Things are looking bad for the euro once again as the debt contagion spreads to Italy and the markets resumed the decline, all important currencies trading lower against the CHF and JPY. Here’s a quick update to my yesterday’s post:

EURJPY

Support breached but JPY lost some ground (temporarily) on BoJ intervention fears (related post – in case you missed it – USDJPY: Some People Just Don’t Get It). Sorry buyers, but there’s no sign of recovery yet – you better wait for it to return into the previous range.

Euro Vs Japanese Yen Daily Chart 8-2-2011Euro Vs Japanese Yen Daily Chart 8-2-2011

EURAUD

A good run to the downside but it’s probably time to wait for the next selling opportunity

Euro Vs Australian Dollar 4hrs Chart 8-2-2011Euro Vs Australian Dollar 4hrs Chart 8-2-2011

EURUSD

Both 4-hrs and daily charts are bearish as resistance into the 1.4430 zone remained intact as last recovery was short-lived, but the longer term charts such as weekly and monthly are bullish. Speaking of monthly charts – we’re still above the 1.400-1.41 support region where the pair found bids in the last 3 months. On the 4-hr chart, support around 1.4260 was breached and that’s a good reason to look for selling opportunities, targeting next barrier within the 1.400-1.41 range.

Euro Vs. US Dollar 4hrs Chart 8-2-2011Euro Vs. US Dollar 4hrs Chart 8-2-2011

 

Euro Vs. US Dollar Monthly Chart 8-2-2011Euro Vs. US Dollar Monthly Chart 8-2-2011

Regarding the dollar, as noted a few days ago – I think it is going to retest the former support trendline soon. Keep an eye on it.

US Dollar Index Daily Chart 8-2-2011US Dollar Index Daily Chart 8-2-2011

and last but not least – one of the key risk indicators

AUDJPY

Key support zone under pressure again. I’ve been watching this level for several weeks and I still think that a real breakdown below this level could turn violent (read: equity markets imploding)

Australian Dollar Vs Japanese Yen Daily Chart 8-2-2011Australian Dollar Vs Japanese Yen Daily Chart 8-2-2011

Have a great day!

Advertisements

About abwehra group

The Art&Science of Trading Gold
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s