Midweek Risk-Off Charts to Watch

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

Mix a little foolishness with your prudence: It’s good to be silly at the right moment. ~ Horace

Good morning. The euro continues to lose ground as all recent rallies have been sold. However, support around 1.3430 is still valid but the pair certainly feels quite heavy, so it seems that it’s only a matter of time until it breaks lower. Some of important events of today’s FX Calendar are the US Initial Jobless Claims and Core Durable Goods Orders

USD Index

Dollar Index Chart Daily 11-23-2011Dollar Index Chart Daily 11-23-2011


Notable resistance is formed around 1.3650 but it seems quite hard to reach such levels. Selling into strength remains the best bet for now

Euro Vs US Dollar Chart 4hrs 11-23-2011Euro Vs US Dollar Chart 4hrs 11-23-2011


I’m bullish on USDCAD since it was testing 1.0230/50 and now that the breakout is very clear, it’s time to expect next target to be reached – at 1.0550 or higher. Buying dips if price pulls back is a plan to consider.

US Dollar Vs Canadian Dollar Chart Daily 11-23-2011US Dollar Vs Canadian Dollar Chart Daily 11-23-2011


I guess that every fibonacci fan is long at these levels since 3 days ago but it doesn’t look good at all. As seen below – the 50% test was a better (temporary) reversal point than current test of 62%, so far. One possible scenario is to sell on the break lower, below fib support.

British Pound Vs US Dollar Chart Daily 11-23-2011British Pound Vs US Dollar Chart Daily 11-23-2011


It seems there more downside for GBP against CHF, and next support region is formed by the median retracement of the entire up leg – as seen below.

British Pound Vs Swiss Franc Chart 4hrs 11-23-2011British Pound Vs Swiss Franc Chart 4hrs 11-23-2011


Risk-off trade continues, hence AUDJPY is trading lower – breaking below support formed by the 62% retracement. More downside is expected, even if price pulls back to test 76.50 first.

Australian Dollar vs Japanese Yen Chart Daily 11-23-2011Australian Dollar vs Japanese Yen Chart Daily 11-23-2011

S&P 500

S&P500 Chart Daily 11-23-2011S&P500 Chart Daily 11-23-2011


Current recovery is probably corrective so it might be a good idea to consider selling opportunities while price doesn’t return in the range above 33

Silver Chart Daily 11-23-2011Silver Chart Daily 11-23-2011


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