More Downside Ahead For The Euro

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

Quote of the day:“The world tolerates conceit from those who are successful, but not from anybody else.” ~ John Blake

Good morning. The ugly gets uglier for the euro as it just reached a 10-year low against the Japanese yen at 100.75 and extended its decline against the dollar to a fresh multi-month low at 1.3165 before pulling back to intraday highs around 1.3220 while writing this. Short-term resistance starts around this week’s opening level at 1.3350 and is followed by 1.3430/50 and 1.3530/50 – as seen below:

EURUSD

Looks very bearish as long as it trades below 1.3350. However, it would remain bearish even in case of a rally to 1.3530, so don’t expect any miracles: rallies, breakdowns = new selling opportunities.

Euro Vs US Dollar Chart 4hrs 10-4-2011Euro Vs US Dollar Chart 4hrs 10-4-2011

EURJPY

102.00/50 is where to expect the sellers to re-enter the game

Euro Vs Japanese Yen Chart 4hrs 10-4-2011Euro Vs Japanese Yen Chart 4hrs 10-4-2011

AUDNZD

The short setup signaled by the reversal pin bar, as noted in my post yesterday, looks good so far. I think there’s more downside to be seen, retesting recent bottom support.

Australian Dollar Vs New Zealand Dollar Chart Daily 10-4-2011Australian Dollar Vs New Zealand Dollar Chart Daily 10-4-2011

EURGBP

.8635 was indeed a good level to join the bears on yesterday’s short-lived pullback, as I wrote in my previous report. Now .8600 is where to look for new opportunities.

Euro vs British Pound Chart 4hrs 10-4-2011Euro vs British Pound Chart 4hrs 10-4-2011

EURCAD

This doesn’t look like the common retracement so I think it’s worth to consider new selling opportunities either on a failed test of 1.3930/50 or on a break below recent bottom at 1.3850

Euro Vs Canadian Dollar Chart 4hrs 10-4-2011Euro Vs Canadian Dollar Chart 4hrs 10-4-2011

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About abwehra group

The Art&Science of Trading Gold
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