Article originally published on innerfx.com and republished here with permission
If someone in your life talked to you the way you talk to yourself, you would have left them long ago. ~ Carla Gordon
Good morning. Dollar is in correction mode while the euro is recovering some of its recent losses. Other risk-sensitive pairs are recovering and there are some reversal patterns across the board, mainly in highly correlated pairs, suggesting that an extended correction is due. The ECB rate decision is today’s key event.
A solid hint of this correction was the reversal bar formed after reaching a fresh top. Next support to keep an eye on is at 82 and I think that’s easy to reach
USD Index Daily 6-6-2012
It seems that the bear flag formation was valid, hence the strong decline below 1300 – which became resistance.
SPX Chart Daily 6-6-2012
EUR finally found some relief and is climbing towards 1.2600 which provides the 1st short-term support. Short-squeezes are normal in such strong declines
EURUSD Chart Daily 6-6-2012
Correction continues, .9530 being the key support level to keep an eye on
USDCHF Chart Daily 6-6-2012
Recovery went out of steam and the Canadian dollar is recovering, therefore support formed by a rising trendline is being tested. If it breaks, it should be rather easy to reach 1.0200 in the next sessions. That’s the next support
USDCAD Chart 4hrs 6-6-2012
Resistance zone formed by a horizontal line and the downward trendline connecting recent lower highs is being tested and it seems that a breakout is just around the corner. Buying on the potential breach of 79 is a plan to consider
USDJPY Chart 4hrs 6-6-2012
Resistance zone is again in focus as NZD recovers. Maybe bulls are luckier this time
NZDUSD Chart 4hrs 6-6-2012
Same as NZDUSD, as both pairs are highly correlated.
AUDUSD Chart 4hrs 6-6-2012
No important resistance levels are seen up to 81 – 83. So there’s a lot of room for this correction
AUDJPY chart daily 6-6-2012