Article originally published on innerfx.com and republished here with permission
Quote of the day:“Nothing is more admirable than the fortitude with which millionaires tolerate the disadvantages of their wealth.” – Rex Stout
Good morning. Unless you’ve been on a holiday until.. now!? and you didn’t have TV, Internet, newspapers or people talking around – you can’t really have escaped the fact that the global markets are imploding. Another big day today (see calendar) as Bernanke is in spotlight and the stock markets are begging for QE3. Will Bernanke announce further easing or at least hint if it is coming up in the near future? – that’s what every trader and his dog are wondering today. Last night I posted some charts related to current collapse – in case you’ve missed them.
Here’s a quick update to AUDUSD: it did reach parity overnight, indeed. But also found support and it is currently forming one big reversal candle – if today’s close will occur into current trading region or higher. Technically speaking, this could be a good buying scenario.
EURUSD – holding surprisingly well into the range. Should stay in range if European markets don’t resume the decline ahead of NY open. Things will probably become more interesting later today because of FOMC.
GBPUSD – yet another failed test of 1.65 before pulling back into support zone at 1.6250. I guess that an exit out of the range should provide a decent trade opportunity – preferably to the upside, although we’re a bit far away now, but weekly charts are still bullish as long as it holds above 1.62-1.6250