Charts to Start the Week 3/5/12

Article originally published on innerfx.com and republished here with permission

History is the version of past events that people have decided to agree upon. ~ Napoleon Bonaparte

Good morning. Euro continues to weaken and so far there is no sign of relief. Some of the most important economic events this week are the interest rate decisions of RBA, RBNZ, BOC, BOE and ECB, the US Trade balance and the most important of them all: the Nonfarm Payrolls on Friday.

USD Index

It seems that last week’s recovery will continue in risk-off trade, first resistance being around 80. A potential breakout would confirm that current recovery is not corrective

Dollar Index Chart Daily 3-5-2012

Dollar Index Chart Daily 3-5-2012

EURUSD

As seen below, there’s nothing to suggest that a bottom is in place at current levels. Nothing like the reversal candle around 1.3000 formed on February 16 which was a good bullish. I, for one, prefer to wait more before considering any buying opportunities. Meanwhile, it’s probably best to sell on weakness and/or minor rallies

EURUSD Chart Daily 3-5-2012

EURUSD Chart Daily 3-5-2012

A level where I’m considering selling into strength is around 1.3280:

EURUSD Chart 4hrs 3-5-2012

EURUSD Chart 4hrs 3-5-2012

AUDNZD

Another resistance is under pressure now, hence a new buying opportunities in case of breakout

AUDNZD Chart Daily 3-5-2012

AUDNZD Chart Daily 3-5-2012

EURJPY

108.50 was a strong barrier and downside is under pressure, as JPY is recovering some ground against its counterparts. Ongoing breach of 107.00/30 suggests that sellers are in control

EURJPY Chart Daily 3-5-2012

EURJPY Chart Daily 3-5-2012

AUDJPY

Support formed by recent higher lows is being tested today, so keep an eye on it. However, uptrend is still strong on daily and weekly charts, but there’s room for a correction so it doesn’t seem a bad idea to sell on a breakdown of this support highlighted below

AUDJPY chart 4hrs 3-5-2012

AUDJPY chart 4hrs 3-5-2012

and here’s the daily chart:

AUDJPY Chart Daily 3-5-2012

AUDJPY Chart Daily 3-5-2012

NZDUSD

The bottom of the consolidation range is again under pressure, which means sellers could be waiting for a breakdown in the coming sessions

NZDUSD chart daily 3-5-2012

NZDUSD chart daily 3-5-2012

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About abwehra group

The Art&Science of Trading Gold
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