Article originally published on innerfx.com and republished here with permission
Quote of the day:“Time has a wonderful way of showing us what really matters.” ~ Margaret Peters
Good morning. Dollar breached horizontal support yesterday as the euro rallied to as high as $1.4245 from a session low at $1.3865 on euro-zone deal optimism. Large swings can be seen all over the place so let’s take a closer look:
Next support is seen around 74, now that we’re back into the range
It will most likely hold above 1.400 in the next days, so it’s probably best to look for buying opportunities on pullbacks.
One of the levels to keep an eye on if you plan to buy dips is 1.4080
As I wrote yesterday, the setup was one of my favourites and when I see it – I’m quite confident that the upcoming breakout would be valid. I expect the Aussie to continue climbing, next upside target being 83
Same story here as it is almost impossible to find a currency pair which is not highly correlated to others. Maybe it is time for a retracement and if we see one – we shouldn’t be afraid to buy the Aussie.
Downtrend is quite strong and more weakness is expected while it holds below parity level, which is currently providing resistance