EURUSD’s Rally Short-Lived, Downside in Focus

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

Quote of the day: “A lie told often enough becomes the truth.” ~ Lenin

Good morning. The Swiss franc made some huge moves yesterday against its counterparts as the SNB capped franc’s rate to 1.20 against the euro, just like they’ve been threatening for a while.

EURUSD

Resistance at 1.43 capped the upside yesterday, as noted in my report. The rally has been corrective – following EURCHF, but it was yet another opportunity for sellers to jump in. I expect the tone to remain the same, thus looking for more selling opportunities on signs of further weakness.

Euro Vs US Dollar Daily Chart 9-7-2011Euro Vs US Dollar Daily Chart 9-7-2011

CHFJPY

The highlighted reversal candle from my yesterday’s post was a good confirmation that the correction came to an end.

Swiss franc Vs Japanese Yen 4hrs Chart 9-7-2011

Silver

As you can see, the 50% retrace value of last upward swing is intact and silver is currently recovering. I remain bullish as long as it holds above 40

Silver Daily Chart 9-7-2011Silver Daily Chart 9-7-2011

AUDUSD

Although it lost some ground after reaching the high at 1.0760, it is still bullish on short-term basis and today’s rally may extend higher, so it’s worth keeping an eye on this resistance zone around 1.0600

Australian Dollar Vs US Dollar Daily Chart 9-7-2011Australian Dollar Vs US Dollar Daily Chart 9-7-2011

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About abwehra group

The Art&Science of Trading Gold
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