Euro Starts the Week Lower; Dollar Extends Friday Recovery

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.

Dollar Index

80 is current important objective to the upside as the recovery is stable

USD Index Chart Daily 11-21-2011USD Index Chart Daily 11-21-2011

EURUSD

Selling into strength is probably still the best thing to do – as seen on Friday

Euro Vs US Dollar Chart 4hrs 11-21-2011Euro Vs US Dollar Chart 4hrs 11-21-2011

USDCAD

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.

US Dollar Vs Canadian Dollar Chart Daily 11-21-2011US Dollar Vs Canadian Dollar Chart Daily 11-21-2011

GBPUSD

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.

British Pound Vs US Dollar Chart Daily 11-21-2011British Pound Vs US Dollar Chart Daily 11-21-2011

AUDUSD

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.

US Dollar Vs Australian Dollar Chart Daily 11-21-2011US Dollar Vs Australian Dollar Chart Daily 11-21-2011

Silver

Recent breakdown was quite violent so current retracement is normal – if it continues, look for resistance around 33

Silver Chart Daily 11-21-2011Silver Chart Daily 11-21-2011

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The Art&Science of Trading Gold
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