Article originally published on innerfx.com and republished here with permission
To avoid situations in which you might make mistakes may be the biggest mistake of all. ~ Peter McWilliams
Good morning. The dollar continued to retreat against some of its counterparts as risk appetite returned. However, the move is rather normal after recent strong gains and so far it looks corrective.
As seen below, a major reistance line is under pressure. Potential breakout would mean fresh lows for EURUSD
Resistance at 1.3450 highlighted in my previous report – formed by the former support zone – was, indeed, strong enough to provide a good selling opportunity for all those bears selling on strength lately, which I think is still the best strategy to consider
Still a good idea to buy dips while support between 1.0250 and 1.0300 holds, as current down leg is rather a correction.
The euro is in free-fall mode against the Aussie, aiming towards 1.3200 as mentioned in my previous report. Support zone formed by the rising trendline which is connecting recent higher lows which now stands around 1.3200 is a key level to keep an eye on.
Resistance around 1.4400 is again under pressure as GBP recovered after a pullback towards recent bottom. It seems that upside remains favored so it’s probably best to look for a buying opportunity on the break above 1.4400