Article originally published on innerfx.com and republished here with permission
The outcome of any serious research can only be to make two questions grow where only one grew before. ~ Thorstein Veblen
Good morning. Dollar is back down retesting weekly bottom ahead of tomorrow’s NFP report.
79.50 remains intact and provided a stable resistance point in the last 3 days. Judging by how things look now, I think there’s a good chance to test 78 soon
Recent decline to 1.3025/50 was corrective and upside is back in focus, so it’s time to keep an eye on 1.32 once again. More upside is likely due to short-covering (EUR short contracts are at all-time record), risk appetite in other instruments/markets which are highly correlated to EURUSD and, of course, ongoing dollar weakness – even if it is corrective in nature – there’s more room
Recovery continues after 33 was tested, hence bulls are back in control. First short-term support is now formed between 32.50 and 33, so there’s no reason to panic as long as silver maintains altitude above the said region
I guess it’s time to expect the recovery to continue as AUD found support around 80.50. A strong NFP figure tomorrow would likely trigger a new rally to 83
There’ve been couple of strong moves recently, all suggesting that a breakout above 1.5750 was just around the corner. 1.5750-1.5800 should provide support now, if cable pulls back from here.
Given recent cable strength, EUR stand no chance against GBP, so I was wrong expecting it to hold onto gains above .8375/00. Maybe some other time…
Recent breach of support at 1.29 looks valid and recovery attempts will probably face selling orders around the former support zone. I remain bearish on AUDNZD on a short-term basis