Article originally published on innerfx.com and republished here with permission
Quote of the day: “For every action there is an equal and opposite government program.” ~ Bob Wells
Good morning. Today is an important day for the euro, as EU leaders are meeting in Brussels to continue negotiations on an agreement to deal with the euro-zone crisis. The euro holds gains around $1.3900, not much changed since yesterday. Well, it’s the market optimism that keeps the market steady these days, so one can expect a large decline if the leaders will eventually fail to announce a concrete plan.
Let’s see what are some of today’s interesting charts:
Support at 76 is still intact
The market is rather quiet right now, but the euro maintains gain near 1.400 where key resistance is formed. I think it’s best to wait for the market reaction to news coming from the Brussels Summit.
The Aussie dollar pulled back to test support at former resistance line. As mentioned yesterday, it’s probably a good level to look for buying opportunities, but careful. I wouldn’t bet on this support level before any news coming from Europe.
Aussie’s pullback is also seen against the NZD, as it erased yesterday’s gains. Support to keep an eye on comes around 1.2950
The US dollar bounced off support at parity as the Canadian Dollar declined after Bank of Canada has cut its economic growth outlook. It’s probably best to keep an eye on this resistance zone which starts a few points above current trading levels
Euro is pulling back after a large rally yesterday, which is normal. 1.4050/75 is where to look for intraday support and buying opportunities