Article originally published on innerfx.com and republished here with permission
“Good judgment comes from experience, and often experience comes from bad judgment.” ~ Rita Mae Brown
Good morning. I’ve been away with limited access to the internet for the past three days, but looking at current charts, I don’t seem to have missed much. However, things are likely to become interesting
Dollar is pulling back from recent top, retesting support around 80.50. The decline is rather corrective and uptrend should remain intact while the dollar holds above a support cluster around the 78 handle.
Those who’ve been waiting for an euro recovery are finally enjoying some relief as the single currency is pushing towards former support at $1.29, where we also have the downward trenline which is connecting recent lower highs, as seen below. Although I remain bearish on EUR and believe that selling on strength is still the best bet, I’d prefer to see the EUR higher from these levels. Meanwhile, buying on the potential break of 1.2900 is a plan to consider – but only if ready to join the bears on the very next selling opportunity.
the recovery is easier to spot on the 4hrs chart
The bull flag formation highlighted one week ago was valid and silver exited the range to the upside, breaking above 29.70-30 resistance. As seen in the recent trading sessions, support holds quite well, so holding long is a good plan
Despite this week’s decline to 1.23, EUR made a strong come-back, returning in the 1.24-1.25 range. Intraday studies and 4hrs charts are now bullish, so I for one am expecting the recovery to continue, breaking above 1.25 eventually – as per my previous post.
Another interesting setup is the AUDJPY, as it is still in range but pushing on the upside barrier. Buying on the break above 79.50-80 is tempting