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