Article originally published on innerfx.com and republished here with permission
Quote of the day: “Whenever people agree with me I always feel I must be wrong.” ~ Oscar Wilde
Good morning. Several reversal signals can be found across the charts today as the dollar is pulling back against most counterparts. Let’s see which are the best charts to watch right now. Similar setups to these below can be seen in other crosses such as NZD, AUD and GBP ones. Keep in mind that they’re all highly correlated so basically if it’s a false reversal signal, all setups below (including others in NZD, AUD, GBP etc) will turn out to be bad.
There were several selling opportunities around resistance zone at 1.3530 but it seems that the recovery is likely to continue, as price breaks above 1.3550. However, selling on weakness is still the better option for now
Support was confirmed around 1550 and we can see a large pin bar suggesting that the recovery is likely to continue. As mentioned yesterday – buying seems a good idea as long as it holds above 1550
Silver is also looking good if you’re considering to buy the dip after the huge decline.
Another reversal signal can be seen in the AUDUSD chart – yesterday’s candle suggesting that a bottom was formed, therefore 1.0200 could be the first target of the ongoing recovery
Same as AUDUSD – while the recovery continues, first important resistance is at 77.80/00. Short term studies would turn bullish on the potential break above the said upside barrier
The dollar rallied after breaking above horizontal resistance highlighted in the chart below, as a result to the last Fed announcement. But maybe it’s time to retest the support zone around 5.600
Here is yet another short setup to consider.