Dollar Breaks Higher, Euro Testing 1.300

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

It’s not the voting that’s democracy, it’s the counting. ~ Tom Stoppard

Good morning. Euro’s sell-off continues in risk-off trade after yesterday’s Fed statement and remains under pressure ahead of bond auctions in Europe.

USD Index

Horizontal resistance has been breached, so it’s time to see whether the dollar will hold above the said barrier which should provide support. Should the former resistance provide support around 80, then EURUSD would face a new selling point in the 1.3100-1.3150 zone

USD Index Chart Daily 12-14-2011USD Index Chart Daily 12-14-2011

EURUSD

Bears’ main target at 1.300 was reached, now what? Well, although it holds – it’s not convincing. Which means that there aren’t many buyers here, so if you’re one of those expecting a huge bounce – you’d better be careful. I remain bearish on EURUSD and will look for new selling opportunities if it pulls back to 1.3100/50 or sell on breakdown / on a violent movement below 1.300

Euro Vs US Dollar Chart Daily 12-14-2011Euro Vs US Dollar Chart Daily 12-14-2011

AUDJPY

Selling risk is one of the best bets nowadays. Support at 78 is under pressure as it’s clear now that last continuation candle was a fake bullish signal. I am bearish on AUDJPY as long as it holds below 79.30-80

Australian Dollar Vs Japanese Yen Chart Daily 12-14-2011Australian Dollar Vs Japanese Yen Chart Daily 12-14-2011

GBPAUD

Current AUD weakness makes this setup rather interesting. 1.5500 is still under pressure and buying on the break higher is a plan to consider

British Pound Vs Australian Dollar Chart 4hrs 12-14-2011British Pound Vs Australian Dollar Chart 4hrs 12-14-2011

USDCAD

Interim resistance zone highlighted two days ago was breached, hence buying dips around 1.0300 if USD pulls back is tempting.

US Dollar Vs Canadian Dollar Chart Daily 12-14-2011US Dollar Vs Canadian Dollar Chart Daily 12-14-2011

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The Art&Science of Trading Gold
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