Article originally published on innerfx.com 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
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
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
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
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
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
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