Article originally published on innerfx.com and republished here with permission
Shallow men believe in luck. Strong men believe in cause and effect. ~ Ralph Waldo Emerson
Good morning. Risk pairs continue to plunge following stock indices. The dollar index holds onto gains not far below interim resistance at 80
USD Index Daily 4-11-2012
Euro looks rather fragile on the daily chart, but maybe it’s worth looking for buying opportunities if recovery gets a bit more convincing
EURUSD Chart Daily 4-11-2012
and a potential breach of interim resistance around 1.3150 is a place where one could look for such opportunities.
EURUSD Chart 4hrs 4-11-2012
It seems that support is intact at median retracement value of last upleg formed since Aussie resumed recovery after pulling back in December. However, there’s most likely some more selling to be seen if it rallies towards 84-85 where sellers are probably waiting in line
AUDJPY Chart Daily 4-11-2012
There’s a lot of selling going on.. just notice how each recovery attempt has been short-lived as Aussie failed to overcome current resistance layer formed by the MA lines, the same lines providing support during recovery process (January – mid February). I am not considering any buying plans while it holds below 1.0450.
AUDUSD Chart Daily 4-11-2012
Cable holds onto gains quite well mainly because of EURGBP which is weakening, and this potential breakout is worth a look. maybe it’s time to revisit 1.6050?
GBPUSD Chart 4hrs 4-11-2012