Article originally published on innerfx.com and republished here with permission
Quote of the day: “It is hard to fight an enemy who has outposts in your head.” ~ Sally Kempton
Good morning. The dollar pulled back across the board but remains bullish against some of its major counterparts such as EUR, GBP, AUD etc. Today’s Calendar is lighter
if we don’t count the imminent end of the world at 11:11 Am 🙂
As mentioned yesterday – 1.3700 is the level I’ll be watching if the pullback continues.
Cable continues to trade in range after yet another test of support around 1.59 yesterday. Anyway, the horizontal support line is still under pressure and it’s quite clear that sellers are already excited about this potential breakdown.
EURAUD continues to recover as the Aussie dollar is losing ground across the board. I remain bullish on EURAUD, expecting a test of 1.36 soon, maybe next week.
US Dollar failed to hold above 1.0230/50 and pulled back 1 big figure yesterday, but upside remains under pressure and short-term sentiment was not affected by the corrective move to 50% of Wednesday’s range.
It’s probably not the best time to look for buying opportunities, unless you’re ready to sell on the potential break of support which resides at 50% (see below)