Euro Resumes Correction as Merkel, Sarkozy Reach Agreement

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

Quote of the day: “There’s no sense in being precise when you don’t even know what you’re talking about.” ~ John von Neumann

Good morning. The euro is climbing towards Friday’s top as the leaders of France and Germany said they have reached an agreement on strengthening Europe’s banking sector – and the European leaders would deliver a plan by the Group of 20, on November 3. Market’s reaction is optimistic but let’s throw up some charts and see what to expect in the coming days:

EURUSD

The trendline connecting recent lower highs is still intact as price pulled back on Friday, but the euro holds gains quite well and it appears that a break of said resistance is likely. Short-term sellers seem to be in stand-by mode

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

… while longer term sellers are in control:

Euro COT 10-10-2011Euro COT 10-10-2011

Dollar Index

Keep an eye on support around 78 while it’s being tested. The movement still looks corrective

USD Index Chart Daily 10-10-2011USD Index Chart Daily 10-10-2011

USDCAD

Selling after forming the reversal candle at 1.0600 was a really good plan but now we have a warning sign formed on Friday. Anyway, price is already retesting recent lows so I think that selling is still the best thing to do

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

GBPUSD

Cable is back around 1.5650 where upside was capped recently but it seems that a breakout is just around the corner, therefore it’s worth to consider a buying opportunity on the potential break above 1.5650

British Pound Vs US Dollar Chart Daily 10-10-2011British Pound Vs US Dollar Chart Daily 10-10-2011

AUDUSD

There’s probably more upside for the Aussie dollar as the recovery continues, but the ground is still fragile while below parity.

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

Advertisements

About abwehra group

The Art&Science of Trading Gold
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s