Article originally published on innerfx.com and republished here with permission
The greatest pleasure in life is doing what people say you cannot do. ~ Walter Bagehot
Good morning. Dollar keeps losing altitude as the correction continues, while risk-sensitive pairs follow stocks higher. Important releases today are the CPI and Initial Jobless Claims (See FX Calendar)
Now that 81 has been breached, next downside barrier to watch is in the 79.50-80 range. Correction is likely to continue
Next upside barrier comes at 1.2900. Intra-day studies remain bullish and it’s probably a good idea to buy dips while 1.2800 holds, adding to longs on the potential break of 1.2900 – carefully keeping an eye on the news, because it’s most likely only a matter of time until next sell-off begins.
Resistance around 30.50 is under pressure as silver continues to push to the upside. As mentioned yesterday, buying on the break of 30.50 is a plan to consider
Euro continues the recovery started yesterday, after forming a reversal candle (see yesterday’s highlight). Although it’s too early to call a reversal, an extended correction would be welcome. Dynamic resistance layer formed by the moving averages is currently being tested, as seen below. I remain bullish on EURAUD for now
80 still holds and AUD is retreating after yesteday’s test. I think it’s a good idea to keep an eye on it, though, considering a buying opportunity on the potential break above 80
Although yesterday’s candle suggests that a recovery is underway, it is still a good idea to keep an eye on 1.2900 while we’re here.