Dollar Up in Asian Risk-Off Trade, Aussie Down, Euro Follows

Article originally published on 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

USD Index

it’s too early to call a bottom, ongoing recovery is probably corrective

USD Index Chart 2-10-2012USD Index Chart 2-10-2012


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

EURUSD Chart 4hrs 2-10-2012EURUSD Chart 4hrs 2-10-2012


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.

EURAUD Chart Daily 2-10-2012EURAUD Chart Daily 2-10-2012


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

AUDCAD Chart Daily 2-10-2012AUDCAD Chart Daily 2-10-2012


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.

EURGBP Chart Daily 2-10-2012EURGBP Chart Daily 2-10-2012


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?

AUDJPY Chart 4hrs 2-10-2012AUDJPY Chart 4hrs 2-10-2012


Time to keep an eye n 1.5750 for a potential breakdown. Such scenario would also favor EURGBP’s rally above .8400

GBPUSD Chart 4hrs 2-10-2012GBPUSD Chart 4hrs 2-10-2012


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: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ 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 )


Connecting to %s