Article originally published on innerfx.com and republished here with permission
Quote of the day:“Mistakes are the portals of discovery.” ~ James Joyce
Good morning. Most charts are little change from yesterday, with EURUSD staying in the range of 1.4350-1.4430. Selling on rallies towards 1.4450 has been one of the best things to do lately and right now there’s no clue that we’re going to see a break out of this range in the next trading sessions. Meanwhile, metals are drawing the most attention as Gold is over $1900 and Silver continues to push to the upside – now above former resistance at 43 (61.8% of 49.75 to 32.30). The German Zew and New Home Sales are today’s notable events in the FX Calendar.
Here are today’s charts of interest – maybe they look a bit blurred but you can click on them to enlarge
still into a narrow range but it will probably exit soon; preferably to the downside, as there’s more difficult to advance far North
Some people are still waiting for a large correction in order to jump in – buying at better levels. Well, judging by how it looks – there are no “better levels” but rather “any levels”. Corrections are just too small… maybe the $2000 handle is where to look for the next leg down
Support around 1.6450 is intact but pressure is high, so it’s best to keep an eye on it and be ready to sell the pound, following it on the way lower.
The daily chart is more suggestive of current bearishness
Gains are still limited due to the tight correlation between AUDUSD and major stock indices – while stocks’ recovery is very modest, AUDUSD is trapped into a narrow range around this pivotal level – former support at 1.0450-1.0500. Anyway, I remain bullish on AUDUSD and I think that it’s worth buying at these levels, as price is likely to return and stabilize above 1.0450-1.0500.