Euro Remains Under Pressure, More Downside Likely

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

USD Index

Uptrend is intact as the buck holds above recent top barrier. More upside is expected

USD Index Chart Daily 12-19-2011USD Index Chart Daily 12-19-2011

EURUSD

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.

Euro VS US Dollar Chart 4hrs 12-19-2011Euro VS US Dollar Chart 4hrs 12-19-2011

GBPAUD

Support highlighted in my previous post at 1.5500 is intact after last test, therefore buying dips is a good bet while support holds.

British Pound Vs Australian Dollar Chart 4hrs 12-19-2011British Pound Vs Australian Dollar Chart 4hrs 12-19-2011

AUDNZD

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

Australian Dollar Vs New Zealand Dollar Chart Daily 12-19-2011Australian Dollar Vs New Zealand Dollar Chart Daily 12-19-2011

USDCAD

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

US Dollar Vs Canadian Dollar Chart 4hrs 12-19-2011US Dollar Vs Canadian Dollar Chart 4hrs 12-19-2011

Advertisements

About abwehra group

The Art&Science of Trading Gold
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s