More Downside for Euro?

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

Quote of the day:“The beginning of knowledge is the discovery of something we do not understand.” ~ Frank Herbert

Good morning. The euro backed away from a fresh multi-week top zone above $1.45 and has slipped back to support region formed by the rising trendline connecting recent higher lows – best seen in the 4-hrs chart below.

Euro Vs US Dollar 4hrs Chart 8-31-2011Euro Vs US Dollar 4hrs Chart 8-31-2011

As we can see above, this support trendline is still intact so the triangle pattern is valid. But while we’re near, it’s best to keep an eye on this support level all the way down to 1.4400, as a potential breakdown might turn out to be a good sell. Overall – EURUSD still very choppy. The German Unemployment figures and the US ADP Nonfarm Employment Change are today’s key events of the FX Calendar.

Other interesting charts to consider:

Gold

1840 is in interim resistance level now that support around 1800 is confirmed. I think there’s more upside for gold and a break above 1800 should extend towards 1900

Gold Daily Chart 8-31-2011Gold Daily Chart 8-31-2011

EURCAD

This is definitely less choppy than EURUSD as recent swings have been large enough to satisfy both bulls and bears. It seems that it’s going to hold below 1.43 for a while, maybe extend current decline to 1.39 or a bit below.

Euro vs Canadian Dollar Daily Chart 8-31-2011Euro vs Canadian Dollar Daily Chart 8-31-2011

NZDUSD

The NZ dollar is performing better than AUD against the US dollar, and just managed to break above the 62% fib value of last downward move. There’s only one resistance level to watch until .8850: .8600/50. I remain bullish on NZDUSD as long as it holds above .8400

New Zealand Dollar Vs US Dollar Daily Chart 8-31-2011New Zealand Dollar Vs US Dollar Daily Chart 8-31-2011

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About abwehra group

The Art&Science of Trading Gold
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