Article originally published on innerfx.com and republished here with permission
Trust your own instinct. Your mistakes might as well be your own, instead of someone else’s. ~ Billy Wilder
Good morning. Euro is testing the downside ahead of ECB interest rate decision on best that ECB will hint of further stimulus measures.
Dollar bounced off horizontal support and is retesting former support. Next barrier is at 79.50
USD Index Daily 5-3-2012
Not much changed, still looking bullish while it holds above horizontal line support
SPX Daily Chart 5-3-2012
There’s much selling going on as it failed to hold onto gains above 1.32, eventually breaking above 1.3270/00. Such violent declines often result in more selling into rallies, if corrections are likely.
EURUSD Chart 4hrs 5-3-2012
There’s a good chance that current decline is corrective. It’s a good idea to keep an eye on it, to see if buyers are doing their stuff around these levels
GBPUSD Chart Daily 5-3-2012
CHF feels quite heavy in risk-off trade, following EURJPY. Hence more EUR selling should result in a breakdown here
CHFJPY Chart Daily 5-3-2012
Recovery was short-lived and downside is again in focus, hence I was wrong a few days ago expecting AUD to continue its journey towards 1.05-1.06. Time to keep an eye on bottom support around 1.0250
AUDUSD Chart Daily 5-3-2012
This 50% retracement was quite a stable support lately. Not sure if it’s a good idea to buy dips, perhaps it’s better to wait for a bounce to buy on strength.
AUDJPY Chart Daily 5-3-2012
Upside is back in focus due to risk-off trade, after a fake exit out of the range to the downside. I remain bullish for now, while it keeps pushing on 1.63 – breaking above, eventually
EURNZD Chart Daily 5-3-2012