Article originally published on innerfx.com and republished here with permission
While one person hesitates because he feels inferior, the other is busy making mistakes and becoming superior. ~ Henry C. Link
Good morning. Euro pulls back again after yet another test of $1.3300 as Asian stocks declined today. US Trade balance and Bernanke’s speech are today’s most important events in the economic calendar
it’s too early to call a bottom, ongoing recovery is probably corrective
Support zone is back in focus after yet another failed attempt to break above $1.33. Bulls shouldn’t worry while EUR doesn’t drop decisively below 1.32 where first support is formed
The reversal candle highlighted in my post yesterday was valid, therefore EUR continues to climb higher towards 1.2500 where first short term resistance line is formed.
AUDCAD looks interesting once again as a large decline is underway after recent rejection at the fresh top. Unless today’s candle will close “much” higher from here forming a continuation/long tailed bar, I think we’ll see more downside towards 1.03-1.04
As I noted yesterday, EURGBP is back on my watchlist as a potential breakout candidate. So far, so good: yesterday’s pullback was corrective and resistance around .8400 is back in focus.
Today’s Asian sell-off continues at time of writing and next support zone is formed around 82.75. Perhaps it will find bids in the European and US trading sessions?
Time to keep an eye n 1.5750 for a potential breakdown. Such scenario would also favor EURGBP’s rally above .8400