Article originally published on innerfx.com and republished here with permission
The government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it. ~ Ronald Reagan
Good morning. Dollar maintains gains and advances further against counterparts as S&P puts 15 eurozone countries on watch for downgrade. The news comes just a few days ahead of the EU summit in Brussels and also 2 days ahead of the ECB’s expected interest rate cut.
There’s likely more upside for the US dollar as support at 78 wasn’t breached, hence recent decline was rather corrective. I remain bullish on USD while it holds above 78 – looking forward for a retest of 80
There’s a simple pattern to follow in EURUSD nowadays: wait for correction/rally during European session, sell during US session. All recent rallies have been sold and there’s no reason to buy dips right now, as bad news just keep coming.
Selling on the break of support at 1.0200, as pointed yesterday, was a good idea – as risk-off trade amid European debt crisis along with RBA’s rate cut are suggesting more downside for Aussie. In case of upside pullbacks, resistance stands around 1.0200 followed by 1.0230/50. Short-term sentiment is slightly bearish as long as pair holds below 1.0300
You know I’ve been keeping an eye on GBPCHF recently, looking to buy on strength – above 1.4380/00. Resistance was finally breached and I’m expecting the rally to continue – 1.4500/50 being the first barrier.
Perhaps it’s still early to call a reversal / resume of uptrend, but those who are hunting all opportunities to catch the very top or the very bottom, might consider current bullish signals
More or less the same story here as the one above (CAD). It seems there’s something about this 5.75 level as dips have been bought with consistency