Article originally published on innerfx.com and republished here with permission
Quote of the day:“The trouble with our times is that the future is not what it used to be” ~ Paul Valery
Good morning. Most currency pairs, such as EURUSD, are still ranging, while most eyes are on precious metals which are retreating from recent top zones. Cable is moving nicely after providing us several clues that a decline is in the cards – as highlighted in my latest posts (here, here and here). The US Initial Jobless Claims is the most important event in the FX Calendar today.
Now let’s watch some charts and see what’s worth our attention these days:
Former support at 1.6450/75 should provide resistance now, if price pulls back to the upside after yesterday’s decline, so 1.6450 is where to look for new selling opportunities
Euro is still pushing on resistance at 1.4500 where it is facing offers. Until we break out of this range, it’s probably best to focus on different instruments. Fading rallies are still the “better” bets if you look for selling opportunities
I am still bullish on AUDUSD although current recovery above 1.0400-1.0450 failed to impress, as AUD is in tight correlation with major stock indices and I guess we all know that stock markets are still under pressure
Here’s a potential long setup developing in EURCHF, now that 1.15 is being tested and there’s a good chance that the CHF will continue to weaken across the board.
Current decline from 1900 has been violent and it seems there’s more downside ahead, next support coming around 1700 where the 50% retracement value of last up leg is seen.