Dollar Retreating, Markets Waiting for ECB

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

Quote of the day:“I think if you do something and it turns out pretty good, then you should go do something else wonderful, not dwell on it for too long. Just figure out what’s next.” ~ Steve Jobs

Good morning. The market is quiet before the ECB rate decision and the press conference later today – other important event of the FX calendar being the Initial Jobless Claims. Let’s take a look at some charts to get a better feel and see if there are any new opportunities:

EURUSD

Daily studies are still bearish as we’re not far away from recent bottom and pressure is likely to remain high. I think that selling is still the best thing to do, but not yet, as bearish signals are not visible and the current recovery is not over.

Euro Vs US Dollar Chart Daily 10-6-2011Euro Vs US Dollar Chart Daily 10-6-2011

USDCAD

The selling setup I noted in my report yesterday is still in play and looks very good. It’s probably only a correction but there’s still a lot more room to the downside. Keep an eye on support zone around 1.0300 – if it breaks, then the recent top around parity level is the next target to consider

US Dollar Vs Canadian Dollar Chart Daily 10-6-2011US Dollar Vs Canadian Dollar Chart Daily 10-6-2011

EURCAD

Same story here: another good looking reversal. It is currently testing support, as seen below, and a breakdown would probably accelerate the decline towards 1.36-1.37. Selling on more weakness is the best option, in my opinion

Euro Vs Canadian Dollar Chart 4hrs 10-6-2011Euro Vs Canadian Dollar Chart 4hrs 10-6-2011

AUDUSD

The Aussie is finally showing some signs of strength, recovering a few points after recent decline. Resistance around .9700 is where to look for buying opportunities if it breaks.

Australian Dollar Vs US Dollar Chart Daily 10-6-2011Australian Dollar Vs US Dollar Chart Daily 10-6-2011

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About abwehra group

The Art&Science of Trading Gold
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