Quote of the day:“Do not wait for extraordinary circumstances to do good; try to use ordinary situations.” ~ Jean Paul Richter
Good morning. Equity markets continued the recovery on Friday, therefore AUD crosses are trading higher – AUDUSD testing resistance into former support zone. The Swiss franc continues to retreat against most counterparts not showing notable signs of strength yet. Let’s take a quick look at some charts:
AUDUSD
Buying a few days ago at “cheap” levels as the bottom was suggested by the highlighted reversal candle was a good idea. Interim resistance is now under pressure and I think it’s best to look for new buying opportunities on strength, if the upside barrier will be breached.
Australian Dollar Vs US Dollar Daily Chart 8-15-2011
EURAUD
Support near 1.38 was breached last week and it seems there’s more downside ahead. Minor rallies will probably be sold, so I am looking for new selling opportunities on potential pullbacks to 1.3800-1.3850. Next support level is at 1.3500
Euro Vs Australian Dollar Daily Chart 8-15-2011
EURCHF
Franc’s retreat continues and there are no signs of weakness yet. I for one am expecting the franc to weaken further, but it’s early to say that it’s a full reversal.
Euro Vs Swiss Franc Daily Chart 8-15-2011
The weekly chart is more interesting – as we have one big reversal candle former last week. As we can see, next major resistance is quite “far” away – around 1.24
Euro Vs Swiss Franc Weekly Chart 8-15-2011
EURUSD
It is still trading into a range, currently near resistance formed by the downward trendline connecting recent tops. Even if current resistance will be breached, gains will probably be limited as the worries in the Eurozone are unlikely to disappear overnight.
Euro Vs US Dollar Daily Chart 8-15-2011
EURGBP
Last two upside pullbacks were sold and current price behaviour suggests more weakness, the bottom around .8650 being the next possible target.
Euro Vs British Pound Daily Chart 8-15-2011
Have a great day and good luck trading!
