Dollar Down After Fed; Euro, Risk Pairs, Metals Rally

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

Believe those who are seeking the truth. Doubt those who find it. ~ Andre Gide

Good morning. Dollar’s decline continues as Fed says interest rates are likely to stay near zero through late 2014. Therefore, euro, risk pairs and metals rallied big-time – as seen on the charts below. Important events in today’s FX Calendar are: Core Durable Goods, Initial Jobless Claims and New Home Sales

USD Index

Now that support around 79.50 has been breached and the buck is testing session lows, it’s not a good idea to buy dips but rather consider new selling opportunities with stops above former support zone and/or yesterday’s high.

USD Index Chart Daily 1-26-2012USD Index Chart Daily 1-26-2012

EURUSD

The breakout scenario mentioned yesterday occurred after Fed’s rate decision and now it’s time to expect former resistance at 1.3050 to provide support on dips.

EURUSD Chart 4hrs 1-26-2012EURUSD Chart 4hrs 1-26-2012

On the daily chart there’s a long tailed candlestick formed yesterday, suggesting that recovery is still strong and pullbacks are finding decent bids.

EURUSD Chart Daily 1-26-2012EURUSD Chart Daily 1-26-2012

Silver

Silver provides another nice breakout setup so it’s best to keep an eye on this resistance around 33 which is being tested at time of writing

Silver Chart Daily 1-26-2012Silver Chart Daily 1-26-2012

AUDJPY

As I stated before, AUDJPY is one of the main pairs EURUSD is following right now. 83 is getting closer, acting like a magnet, so no matter what you’re planning to do – be that selling on strength or buying more on the potential breakout – it’s best to wait until this level will be tested, probably a matter of hours.

AUDJPY Chart Daily 1-26-2012AUDJPY Chart Daily 1-26-2012

EURGBP

EURGBP is back at resistance zone after a short visit to the downside where it found bids yesterday. As said two days ago, I think it would be a good bet to buy on the potential breakout higher – targeting .8500/25

EURGBP Chart Daily 1-26-2012EURGBP Chart Daily 1-26-2012

AUDNZD

AUD is facing resistance around 1.300 so it is still a good idea to keep an eye on 1.2900 which has a good chance to break soon

AUDNZD Chart 4hrs 1-26-2012AUDNZD Chart 4hrs 1-26-2012

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