Risk On Trade Sends Dollar Below Support, Aussie gets a Lift

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

The greatest challenge to any thinker is stating the problem in a way that will allow a solution. ~ Bertrand Russell

Good morning. Dollar pulled back yesterday as risk pairs rallied following stocks, hence my plans to look for selling opportunities on more AUD weakness are on-hold. Holidays are approaching, so it’s probably best to take a break – not focusing much on charts & trades these days.

USD Index

Support formed by recent resistance around 80 is being breached, and that’s a big warning sign for dollar bulls. Perhaps is not the best thing to buy dips yet, but rather wait a bit more to see how this unfolds

USD Index Chart Daily 12-21-2011USD Index Chart Daily 12-21-2011

EURUSD

Next resistance is around 1.32, so it’s a good idea to look for weakness signs if EUR gains 100 more points in the next sessions.

Euro Vs US Dollar Chart 4hrs 12-21-2011Euro Vs US Dollar Chart 4hrs 12-21-2011

 

GBPAUD

Short term charts are looking quite bearish now that the range has been breached to the downside, the opposite to what I expected – as I was looking for a buying opportunity on the potential break of 1.5650 resistance. One thing to consider in current conditions is to sell around 1.55 if price pulls back to the upside.

British Pound Vs Australian Dollar Chart 4hrs 12-21-2011British Pound Vs Australian Dollar Chart 4hrs 12-21-2011

USDCAD

Pivotal support zone is under high pressure as CAD strengthens, following crude oil. Well, no more higher lows and one big leg down from recent top to 50% retracement are suggesting that it’s best to wait if you’re one of the US dollar bulls – otherwise consider selling on strength towards 1.0300 or more weakness, below 1.0200. I, for one, prefer to stand aside for now.

US Dollar Vs Canadian Dollar Chart 4hrs 12-21-2011US Dollar Vs Canadian Dollar Chart 4hrs 12-21-2011

AUDJPY

Either due to pre-holidays optimism or something else – it looks that recent top around 80 is on the radar: potential reversal candle there should provide a reason to sell.

Australian Dollar Vs Japanese Yen Chart Daily 12-21-2011Australian Dollar Vs Japanese Yen Chart Daily 12-21-2011

Current hourly chart is as bullish as it gets, suggesting that it’s best to look for short-term scalps in case of minor pullbacks, hence buying dips

Australian Dollar Vs Japanese Yen Chart Hourly 12-21-2011Australian Dollar Vs Japanese Yen Chart Hourly 12-21-2011

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About abwehra group

The Art&Science of Trading Gold
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