Article originally published on innerfx.com and republished here with permission
Quote of the day:“Be wiser than other people, if you can, but do not tell them so.” ~ Lord Chesterfield
Good morning. Dollar holds onto gains as euro’s rally on Friday was short lived and sellers rushed in when price reached $1.3600/15, not far below $1.3650 – the barrier highlighted in my previous post.
80 is current important objective to the upside as the recovery is stable
Selling into strength is probably still the best thing to do – as seen on Friday
Positively correlated to USD Index – USDCAD continues to strengthen after testing support on Friday. Buying dips or holding long with decent stops work well so far.
Cable certainly feels heavy after Friday’s sell-off and support around 50% fib of the recent recovery from 1.5270 to 1.6160. If risk-off trade continues to develop in coming sessions, then selling on the breakdown of 50% support is a scenario to consider.
Same (bearish) story here. Well, perhaps a correction is due soon, and if that’s the case – buying dips around .9900 if support holds with a target at 1.0100 might be a good idea.
Recent breakdown was quite violent so current retracement is normal – if it continues, look for resistance around 33