The Sell-Off Continues

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

USD Index

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

USD Index Chart Daily 9-30-2011USD Index Chart Daily 9-30-2011

EURUSD

As seen below, the 50% retracement value which provided support on last downside attempt is currently under heavy pressure.

Euro Vs US Dollar Chart Hourly 9-30-2011Euro Vs US Dollar Chart Hourly 9-30-2011

and the daily chart

Euro Vs US Dollar Chart Daily 9-30-2011Euro Vs US Dollar Chart Daily 9-30-2011

EURGBP

Still waiting for support around 50% to be tested and breached, eventually

Euro Vs British Pound Chart 4hrs 9-30-2011Euro Vs British Pound Chart 4hrs 9-30-2011

AUDNZD

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

Australian Dollar Vs New Zealand Dollar Chart Daily 9-30-2011Australian Dollar Vs New Zealand Dollar Chart Daily 9-30-2011

AUDUSD

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.

Australian Dollar vs US Dollar Chart Daily 9-30-2011Australian Dollar vs US Dollar Chart Daily 9-30-2011

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About abwehra group

The Art&Science of Trading Gold
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