Dollar Up on Eurozone Downgrades, Euro Drops Further

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

Confidence is 10% hard work and 90% delusion. ~ Tina Fey

Good morning. Euro fell further against its counterparts as S&P downgraded France, Austria, Italy and Spain by one notch, but it kept Germany’s AAA rating level.

USD Index

It seems that last consolidation cycle has come to an end as the dollar rallied on S&P’s downgrade. More upside is likely and it’s probably best to buy dips as long as there is no sign of trend exhaustion

USD Index Chart Daily 1-16-2012USD Index Chart Daily 1-16-2012

EURUSD

Euro had a good chance to extend the recovery above $1.29 which was under pressure on Friday’s European trading session but S&P’s downgrade triggered a strong selling. The entire 1.28-1.29 zone is now providing resistance, so keep an eye on it if euro recovers.

Euro VS US Dollar Chart Daily 1-16-2012Euro VS US Dollar Chart Daily 1-16-2012

Silver

The recovery is intact although silver pulled back on Friday. Intraday charts still look bearish but the daily suggests more bullishness on a short-term basis. However, recovery is still very weak if we compare current upside range to September’s sell-off

Silver Chart Daily 1-16-2012Silver Chart Daily 1-16-2012

USDCHF

last bounce confirms the uptrend once again and as I mentioned in some previous reports, it’s best to look for buying opportunities in case of pullbacks and breakouts, as long USDCHF seems to be one of the best bets in the first part of 2012

US Dollar Vs Swiss Franc Chart 4hrs 1-16-2012US Dollar Vs Swiss Franc Chart 4hrs 1-16-2012

The weekly chart is more interesting as the dollar recovered more than half of the entire decline started in 2010 and next obvious target is the 61.8% of the said decline which is around parity level.

US Dollar Vs Swiss Franc Chart Weekly 1-16-2012US Dollar Vs Swiss Franc Chart Weekly 1-16-2012

EURCHF

EURCHF continues to trade in a narrow range, approaching SNB’s fixed floor at 1.200. A good plan is to maintain pending buy orders above current trading levels, as they should be triggered in the event of a new intervention of any kind.

Euro Vs Swiss Franc Chart Daily 1-16-2012Euro Vs Swiss Franc Chart Daily 1-16-2012

AUDJPY

Last euro’s sell-off doesn’t affect AUDJPY that much, so it remains in range between 78 and 79.50. Buying on the potential break above 79.50 is still a scenario to consider

Australian Dollar Vs Japanese Yen Chart Daily 1-16-2012Australian Dollar Vs Japanese Yen Chart Daily 1-16-2012

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