Risk-On Trade Continues, Breakouts All Over the Charts

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

EURUSD

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.

Euro Vs US Dollar Chart Daily 10-13-2011Euro Vs US Dollar Chart Daily 10-13-2011

USDCAD

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.

US Dollar Vs Canadian Dollar Chart Daily 10-13-2011US Dollar Vs Canadian Dollar Chart Daily 10-13-2011

AUDUSD

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

Australian Dollar Vs US Dollar Chart Daily 10-13-2011Australian Dollar Vs US Dollar Chart Daily 10-13-2011

AUDJPY

77.00 was the key resistance here, now it should provide support. Next upside barrier is around the falling trendline connecting recent lower highs.

Australian Dollar Vs Japanese Yen Chart Daily 10-13-2011Australian Dollar Vs Japanese Yen Chart Daily 10-13-2011

The weekly AUDJPY chart is also interesting, as we’re dealing with a reversal candle (as discussed a few days ago)

Australian Dollar Vs Japanese Yen Chart Weekly 10-13-2011Australian Dollar Vs Japanese Yen Chart Weekly 10-13-2011

GBPUSD

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

British Pound Vs US Dollar Chart Daily 10-13-2011British Pound Vs US Dollar Chart Daily 10-13-2011

AUDNZD

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

Australian Dollar Vs New Zealand Dollar Chart Daily 10-13-2011Australian Dollar Vs New Zealand Dollar Chart Daily 10-13-2011

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About abwehra group

The Art&Science of Trading Gold
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