It’s not the voting that’s democracy, it’s the counting. ~ Tom Stoppard
Good morning. Euro’s sell-off continues in risk-off trade after yesterday’s Fed statement and remains under pressure ahead of bond auctions in Europe.
USD Index
Horizontal resistance has been breached, so it’s time to see whether the dollar will hold above the said barrier which should provide support. Should the former resistance provide support around 80, then EURUSD would face a new selling point in the 1.3100-1.3150 zone
USD Index Chart Daily 12-14-2011
EURUSD
Bears’ main target at 1.300 was reached, now what? Well, although it holds – it’s not convincing. Which means that there aren’t many buyers here, so if you’re one of those expecting a huge bounce – you’d better be careful. I remain bearish on EURUSD and will look for new selling opportunities if it pulls back to 1.3100/50 or sell on breakdown / on a violent movement below 1.300
Euro Vs US Dollar Chart Daily 12-14-2011
AUDJPY
Selling risk is one of the best bets nowadays. Support at 78 is under pressure as it’s clear now that last continuation candle was a fake bullish signal. I am bearish on AUDJPY as long as it holds below 79.30-80
Australian Dollar Vs Japanese Yen Chart Daily 12-14-2011
GBPAUD
Current AUD weakness makes this setup rather interesting. 1.5500 is still under pressure and buying on the break higher is a plan to consider
British Pound Vs Australian Dollar Chart 4hrs 12-14-2011
USDCAD
Interim resistance zone highlighted two days ago was breached, hence buying dips around 1.0300 if USD pulls back is tempting.
US Dollar Vs Canadian Dollar Chart Daily 12-14-2011
have a great day!
Bravo ,keep it up . your have wonderful analysis, thanks
Well, Great insight on my last comment. BTW, I was looking for a long position for the whole next year :). and i think 3000 area is a better entry price. But like you said its all about dollar right now. So i will wait for next breakdown and trade intraday. I am also looking for deep Retracement soon around 3100-50 area to load up shorts.
thank you too and you're welcome :)
just a minor correction to your comment: it's actually all about the euro now. Buying it for no reason just because it seem cheap (hmm, to be honest it still holds gains quite well given all the eurozone mess this year) is likelt to be a big-big mistake. Don't try to catch the falling knife
"Don't try to catch the falling knife" well said, I will keep this in mind. Looking for the market reaction again keeping short in mind Thanks a lot.
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