Thursday Charts: Dollar, Aussie Losing Ground

Article originally published on and republished here with permission

Trusting our intuition often saves us from disaster ~ Anne Wilson Schaef

Good morning. Dollar continues to be sold into rallies as the euro finds intraday support at $1.3185/00

USD Index

As seen below – dollar is losing ground on a short-term basis but it is still above recent corrective bottom at 79.

USD Index Daily 3-22-2012

USD Index Daily 3-22-2012


As noted yesterday, it’s probably still a good plan to buy dips while it holds above 1.3185/00. It’s also tempting to buy on the potential break above 1.3290/00. I prefer to wait a bit more while it is trading in the range highlighted below and rather focus on better trade setups

EURUSD Chart 4hrs 3-22-2012

EURUSD Chart 4hrs 3-22-2012


Here’s the nice breakout I was expecting yesterday. EUR breached out very fast and it is already almost 2 big figures above former resistance. There’s definitely more room to the upside so I remain bullish while the breakout is valid (price above 1.6180 / dips short-lived etc).

EURNZD chart Daily 3-22-2012

EURNZD chart Daily 3-22-2012


Same story here because EURNZD and EURAND are positively correlated, just that the EURAUD’s support zone is wider, so the entire range highlighted below should provide support on dips.

EURAUD chart Daily 3-22-2012

EURAUD chart Daily 3-22-2012


Dollar is heavier against the Japanese yen after last failed attempt to break 84. Maybe this time a correction is just around the corner? If so, selling on the breakdown below 83 is a plan to consider

USDJPY Chart 4hrs 3-22-2012

USDJPY Chart 4hrs 3-22-2012


And here is why the EURAUD and EURNZD are getting stronger: as you might have guessed – it’s not about a stronger EUR but about a weaker Aussie. Corrective or not – I think that this decline will continue

AUDUSD chart Daily 3-22-2012

AUDUSD chart Daily 3-22-2012


About abwehra group

The Art&Science of Trading Gold
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