Dollar Retracing, Remains Bullish

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

Here’s something to think about: How come you never see a headline like ‘Psychic Wins Lottery’? ~ Jay Leno 

Good morning. Euro recovered some ground after sliding to as low as $1.2945 two days ago, but the move is likely corrective and there’s more room for it to move higher.

USD Index

As seen below – current pullbacks is rather corrective and it should be interesting to watch how recent resistance will react to a potential test

USD Index Chart Daily 12-16-2011USD Index Chart Daily 12-16-2011

EURUSD

Bulls shouldn’t be too confident in current conditions, as downside pressure remains high mainly due to fears of new downgrades. Therefore, selling into strength is still the main theme

Euro Vs US Dollar Chart 4hrs 12-16-2011Euro Vs US Dollar Chart 4hrs 12-16-2011

and here’s an hourly chart to please day traders

Euro Vs US Dollar Chart hourly 12-16-2011Euro Vs US Dollar Chart hourly 12-16-2011

GBPAUD

The bullish setup highlighted in my previous post was quite good, as GBP rallied for 150 points above resistance at 1.5500. I still believe it’s a good idea to hold onto longs or keep buying while 1.5500 holds

British Pound Vs Australian Dollar Chart 4hrs 12-16-2011British Pound Vs Australian Dollar Chart 4hrs 12-16-2011

AUDNZD

Not such an interesting setup yet as the consolidation continues but it’s probably about to become a good setup soon. As seen below, there clearly is a lot of selling going on around 1.32 which keeps the pair trapped in this range for weeks, so it’s probably best to look for an exit of the range – below 1.3050

Australian Dollar Vs New Zealand Dollar Chart Daily 12-16-2011Australian Dollar Vs New Zealand Dollar Chart Daily 12-16-2011

EURJPY

Although the pair has been quiet in the last two days, 100 is still in focus. Don’t expect any BoJ interventions as the USDJPY keeps recovering and that’s the important pair in the intervention-hope equation.

Euro vs Japanese Yen Chart Daily 12-16-2011Euro vs Japanese Yen Chart Daily 12-16-2011

AUDJPY

The question now is whether the entire decline to 77 was a corrective cycle – however, selling into strength a bit above 78 is tempting.

Australian Dollar Vs Japanese Yen Chart 4hrs 12-16-2011Australian Dollar Vs Japanese Yen Chart 4hrs 12-16-2011

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About abwehra group

The Art&Science of Trading Gold
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