US Dollar Continues to Strengthen After Standard & Poor’s Warning

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.

USD Index

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

USD Index Chart Daily 12-6-2011USD Index Chart Daily 12-6-2011

EURUSD

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.

Euro Vs US Dollar Chart 4hrs 12-6-2011Euro Vs US Dollar Chart 4hrs 12-6-2011

AUDUSD

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

Australian Dollar Vs US Dollar Chart 4hrs 12-6-2011Australian Dollar Vs US Dollar Chart 4hrs 12-6-2011

GBPCHF

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.

British Pound Vs Swiss Franc Chart 4hrs 12-6-2011British Pound Vs Swiss Franc Chart 4hrs 12-6-2011

USDCAD

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

US Dollar Vs Canadian Dollar Chart 12-6-2011US Dollar Vs Canadian Dollar Chart 12-6-2011

USDNOK

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

US Dollar Vs Norwegian krone Chart Daily 12-6-2011US Dollar Vs Norwegian krone Chart Daily 12-6-2011

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About abwehra group

The Art&Science of Trading Gold
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