Article originally published on innerfx.com and republished here with permission
Nobody can be so amusingly arrogant as a young man who has just discovered an old idea and thinks it is his own. ~ Sydney J. Harris
Good morning. The dollar tested last year’s top as euro continues to tumble amid Greece exit worries. Euro’s recovery on Friday seems rather corrective and sellers are probably waiting in line at 1.2900 and around 1.300, which are better selling levels.
The dollar index reached a high above last year’s top, testing January’s resistance – as seen below.
USD Index Weekly 5-21-2012
Support zone starts between 80 and 80.50.
USD Index Daily 5-21-2012
Next important support to keep an eye on, formed by 2012′s opening price, is best seen on the weekly chart
SPX Chart Weekly 5-21-2012
Friday’s reversal candle formed around support zone suggests that a recovery is due, but there’s much selling pressure just around the corner, so rallies are likely to be sold
EURUSD Chart Daily 5-21-2012
4hrs chart becomes slightly bullish but corrections are normal after strong declines
EURUSD Chart 4hrs 5-21-2012
waiting for an exit out of consolidation range between 1.2790 and 1.2850 was worth it – as AUD rallied up to 1.3040 very fast after the breakout
AUDNZD Chart Daily 5-21-2012
Here is another nice breakout, highlighted a week ago. Perhaps correction will continue, targeting support at .9300, but overall sentiment remains bullish
USDCHF Chart Daily 5-21-2012
In case of pullback, 1.2890/00 is where to expect support
EURAUD Chart Daily 5-21-2012
Strong resistance around 1.0030 was finally breached, and next barrier is seen at 1.0300. Interim support is formed around 1.0100
USDCAD Chart Daily 5-21-2012
Cable followed EUR and declined well below short-term support levels at 1.6050 and 1.5950 – which is a key interim resistance now
GBPUSD Chart Daily 5-21-2012