Article originally published on innerfx.com and republished here with permission
Quote of the day:“If you can’t do what you want, do what you can.” ~ Lois McMaster Bujold
Good morning. It’s been a volatile day in the markets yesterday as the dollar continues to lose ground against its most counterparts. The setups discussed yesterday played out nicely – but let’s see what story are the charts trying to tell us today
Euro’s recovery continues and resistance around 1.400 acts like a magnet. Short-term bias is bullish and in case of an intraday pullback, I’m expecting 1.3700 to provide support.
It looks that a correction is due, in which case it’s best to wait for a test of 1.0250-1.0300 before deciding whether more selling is a good idea. I remain bearish on USDCAD – looking for fresh selling opportunities in the said range of 1.0250-1.0300 or on a new breakdown, below today’s opening price.
Breaking above parity was easy – but let’s see if the Aussie dollar is able to hold gains now. Minor resistance is near current trading levels, at the 62% retracement value of last down leg. If it pulls back from here, then parity is where to consider new buying opportunities
77.00 was the key resistance here, now it should provide support. Next upside barrier is around the falling trendline connecting recent lower highs.
The weekly AUDJPY chart is also interesting, as we’re dealing with a reversal candle (as discussed a few days ago)
More or less the same story here – trading at higher levels, but not confirming a new floor. More upside is likely, but we should be cautious about a potential correction soon
This is another nice setup: as you can see below, resistance provided by recent top has been cleared and the Aussie seems likely to continue strengthening against the NZD