Article originally published on innerfx.com and republished here with permission
Patience has its limits. Take it too far, and it’s cowardice. ~ George Jackson
Good morning. Death of Kim Jong Il is the hottest topic today and it is influencing the currency market, as the dollar strengthened across the board in the Asian trading session. The euro continues to orbit around 1.300 against the dollar ahead of ECB Draghi’s speech a bit later today and remains vulnerable to more rating downgrades.
Here’s a couple of charts to start the week
Uptrend is intact as the buck holds above recent top barrier. More upside is expected
A correction would be more than welcome, so in case you don’t feel comfortable selling at current levels – keep an eye on 1.3050. If it breaks, looks like a good idea to sell later, in the 1.3150-1.3220 range.
Support highlighted in my previous post at 1.5500 is intact after last test, therefore buying dips is a good bet while support holds.
Here’s an update to the setup posted last week: recent sell-off was quite powerful and support around 1.3050 is under pressure. Selling on weakness seems the best thing to do right now
Given all recent higher highs and higher lows, there’s only one thing I can think of: buying on strength – if 1.0400 eventually breaks