Dollar Loses Ground Ahead of Tomorrow’s NFP

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.

USD Index

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

USD Index Chart Daily 2-2-2012USD Index Chart Daily 2-2-2012

EURUSD

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

EURUSD Chart Daily 2-2-2012EURUSD Chart Daily 2-2-2012

Silver

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

Silver Chart daily 2-2-2012Silver Chart daily 2-2-2012

AUDJPY

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

AUDJPY chart Daily 2-2-2012AUDJPY chart Daily 2-2-2012

GBPUSD

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.

GBPUSD Chart Daily 2-2-2012GBPUSD Chart Daily 2-2-2012

EURGBP

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…

EURGBP Chart Daily 2-2-2012EURGBP Chart Daily 2-2-2012

AUDNZD

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

AUDNZD chart Daily 2-2-2012AUDNZD chart Daily 2-2-2012

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About abwehra group

The Art&Science of Trading Gold
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