Article originally published on innerfx.com and republished here with permission
The man who has confidence in himself gains the confidence of others. ~ Hasidic Saying
Good morning. Dollar continues to fall as stocks recover, hence risk currencies, including EURUSD, are following stocks higher. Here are some of today’s interesting charts
Support around 79.50 is in focus as dollar’s decline continues. That is probably a bottom bulls are keeping an eye on
Daily studies are slightly bullish as the euro trades above recent lower high and breached above resistance layer formed between 1.28 and 1.29. Next resistance is seen around 1.3150. I remain bearish on EUR on a medium term basis but current recovery provides some good short-term and intraday buying opportunities.
Resistance at 30.50 has been breached, so the potential breakout mentioned yesterday is valid. Anyway, gains are still moderate as silver keeps trading in a narrow range lately, but upside remains favoured. I remain bullish on silver, expecting it to test offers in the 32.50-33 region in a week or so.
Recovery continues and resistance at 1.2500 is getting closer. Who is already holding long positions might consider buying more on the potential breach of 1.2500
Buying on the break of 80, as I wrote yesterday, wasn’t a bad plan at all. Perhaps a consolidation is due, but upside remains favoured so it’s probably a good idea to be one of the bulls while 79.50-80 holds.
As much as I wanted to see a break below 1.29 a few days ago, support holds and the cross keeps trading in range. A plan I’m considering right now is to sell on strength around 1.3050.