Article originally published on innerfx.com and republished here with permission
Quote of the day: “There art two cardinal sins from which all others spring: Impatience and Laziness.” ~ Franz Kafka
Good morning. The dollar holds gains as the euro is retreating after yesterday’s short-lived attempt to reach the $1.37 zone. The resistance around 1.3700 highlighted in my yesterday’s post is intact and as long as the euro holds below, selling on signs of weakness is probably the best thing to do. Let’s check the dollar index chart before continuing with the EUR and others
There’s a horizontal support line around 77.50 right now where the dollar found a temporary resistance some days ago. Well, if sellers manage to breach through the said line – selling on the break lower could be worth it. Meanwhile, upside remains favored as the dollar is strengthening across the board
As seen below, the 50% retracement value which provided support on last downside attempt is currently under heavy pressure.
and the daily chart
Still waiting for support around 50% to be tested and breached, eventually
The Aussie dollar continues to climb nicely against the Kiwi, providing a buying opportunity on strength, as mentioned in my last report. I remain bullish on AUDNZD and I think that a potential break above 1.28 should be a new opportunity to join the bulls
This looks bad if you’re one of those (like me) who thought that we’re dealing with a reversal a few days ago. No reversal yet as risk-off trade rules supreme and the markets continue to fall. The other correlated pairs such as AUDJPY, NZD crosses etc. posted a few days ago all look the same.