Euro, AUD, Cable Testing Support

Article originally published on innerfx.com and republished here with permission

Quote of the day: “Statistics: The only science that enables different experts using the same figures to draw different conclusions.” ~ Evan Esar

Good morning. Euro remains weak across the board although it bounced off support near 1.3400. The recovery is modest, so I believe that best thing to do is still to sell into strength. The Initial Jobless Claims is the most important event of today’s FX calendar.

EURUSD

Maybe it is a bit too low to sell at these levels unless, of course, price violently breaks below 1.3400/30 on more eurozone problems. Else, I think it’s best to wait for an extended correction towards 1.3650-1.37.

Euro vs US Dollar Chart 4hrs 11-17-2011Euro vs US Dollar Chart 4hrs 11-17-2011

GBPUSD

The positive correlation between GBPUSD and AUDUSD can be seen from a plane nowadays, being 80% to 90% (both hourly and daily). In fact, the correlation between ALL currency pairs can be seen from a plane, but now let’s focus on this one. Median fib retracement value is under pressure since yesterday and if you’re one of the aggressive buyers, then you probably have a good reason to buy the dip. I am more conservative and would rather sell on rallies

British Pound Vs US Dollar Chart Daily 11-17-2011British Pound Vs US Dollar Chart Daily 11-17-2011

AUDUSD

Support still holds but looks fragile..

Australian Dollar Vs US Dollar Chart Daily 11-17-2011Australian Dollar Vs US Dollar Chart Daily 11-17-2011

Silver

It is still trading sideways in a consolidation range between 33 and 35.00/30, so there’s not much to do right now but watch & wait. The move from 26 to 35 after the huge decline seems corrective, thus selling on the break below 33 is the main plan

Silver Chart Daily 11-17-2011Silver Chart Daily 11-17-2011

USDCAD

Not the best looking breakout pattern but upside remains favored, although intraday pullbacks are quite violent – most likely tearing through weak stops

US Dollar Vs Canadian Dollar Chart Daily 11-17-2011US Dollar Vs Canadian Dollar Chart Daily 11-17-2011

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About abwehra group

The Art&Science of Trading Gold
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