Article originally published on innerfx.com and republished here with permission
Be less curious about people and more curious about ideas. ~ Marie Curie
Good morning. Dollar climbs higher across the board as EUR declined below $1.3200 – a level which is currently providing first intra-day resistance.
Now that resistance/former support is being tested, the question is whether ongoing recovery is corrective or not. We shall see within the next few trading sessions, so keep an eye on the highlighted level around 79.50
EURUSD is again looking heavier, forming lower lows and lower highs since the $1.3200 breakdown. I believe that EURJPY’s recovery is what keeps the EURUSD in the upper territory right now and there’s a good chance that EURJPY would continue to recover
Many eyes are on EURJPY these days as JPY is the main loser across the board lately. As seen below, EURJPY breached higher after consolidating in a range of 100 points for a few days. I remain bullish, expecting to see more upside action
Almost the same story here, just that it is much stronger than EURJPY, following major stock indices on their trip to the North side.
.8400 provides a strong barrier and all attempts to break it since December have been short-lived. However, I keep it on my potential breakouts watchlist for now.
Aggressive sellers are probably looking to re-sell it around current levels, on the pullback to former support at 1.5750. It definitely looks bearish and there’s probably more selling pressure to be seen.
All recent pullbacks have been short-lived and NZD keeps pushing higher, retesting .8400. I remain bullish, expecting a breakout soon
Decline resumes and another support level was breached. Selling on minor pullbacks to the upside is a plan to consider.