Article originally published on innerfx.com and republished here with permission
The best ideas come as jokes. Make your thinking as funny as possible. ~ David M. Ogilvy
Good morning. Euro is little changed against the US dollar since yesterday, but upside remains favored while consolidation continues above $1.3200 which is the first intraday support zone.
As seen below, not much happened since Monday’s opening, so the dollar stays in the middle of the range between 78.00/50 and 80. Rallies towards 80 would probably face serious selling near recent top, where the reversal candle is formed
1.3290 is where to look for a potential buy setup if EUR continues to strengthen, breaking above recent top.
The Japanese yen is losing more ground across the board and EURJPY is one of the main pairs to watch these days. After a strong rally following the breakout @103, it becomes more obvious that there’s no important barrier up to 110
Correction might be over, now that AUD found support near 84.50/60. As I noted yesterday, corrections are likely to be short lived as AUDJPY is the main follower of stocks, which are trading higher these days. So, buying dips or on strength are probably the best bets, while it holds above highlighted support at 84.50
I remain bearish on AUDCAD and, as noted yesterday, I think that rallies will be short-lived like in the past 3 weeks. If so, 1.0660 is a resistance zone to keep an eye on, where next round of selling may emerge
Buyers are still in control, although .8400 remains intact after being tested 3 times this month. As seen below, the MA zone is providing a solid support since December. It’s still a good idea to keep an eye on .8400
Silver is back on the breakout watching after it rallied yesterday, suggesting that consolidation is over. Time to keep an eye on 34.50
EURGBP also deserves attention now that it returned to .8400, the same old resistance capping the upside since December, 2011. And yeah, I know this is the 5th time when I think that a breakout is just around the corner.