Quote of the day: “Whenever people agree with me I always feel I must be wrong.” ~ Oscar Wilde
Good morning. Several reversal signals can be found across the charts today as the dollar is pulling back against most counterparts. Let’s see which are the best charts to watch right now. Similar setups to these below can be seen in other crosses such as NZD, AUD and GBP ones. Keep in mind that they’re all highly correlated so basically if it’s a false reversal signal, all setups below (including others in NZD, AUD, GBP etc) will turn out to be bad.
EURUSD
There were several selling opportunities around resistance zone at 1.3530 but it seems that the recovery is likely to continue, as price breaks above 1.3550. However, selling on weakness is still the better option for now
Euro Vs US Dollar Chart Hourly 9-27-2011
Gold
Support was confirmed around 1550 and we can see a large pin bar suggesting that the recovery is likely to continue. As mentioned yesterday - buying seems a good idea as long as it holds above 1550
Gold Chart Daily 9-27-2011
Silver
Silver is also looking good if you’re considering to buy the dip after the huge decline.
Silver Chart Daily 9-27-2011
AUDUSD
Another reversal signal can be seen in the AUDUSD chart – yesterday’s candle suggesting that a bottom was formed, therefore 1.0200 could be the first target of the ongoing recovery
Australian Dollar Vs US Dollar Chart Daily 9-27-2011
AUDJPY
Same as AUDUSD – while the recovery continues, first important resistance is at 77.80/00. Short term studies would turn bullish on the potential break above the said upside barrier
Australian Dollar Vs Japanese Yen Chart Daily 9-27-2011
USDNOK
The dollar rallied after breaking above horizontal resistance highlighted in the chart below, as a result to the last Fed announcement. But maybe it’s time to retest the support zone around 5.600
US Dollar Vs Norwegian Krone Chart Daily 9-27-2011
GBPAUD
Here is yet another short setup to consider.
British Pound Vs Australian Dollar Chart Daily 9-27-2011
Have a great day, cheers!
€ / Aud also looks like another Short to consider IMHO. :)
yes, but I hate correlations to be honest. It's a lot more often bad than good
Errrr………. could you please be more explicit??
since they're all the same, you're basically putting all eggs in same basket.
i.e. short EURAUD, short GBPNZD, short EURNZD, long AUDUSD, long NZDUSD, long AUDJPY – it's the same trade: you either lose them all or win them all
Oh right!!!! No, I would never sell the Euro or buy the Aud twice. I just feel more comfortable to go Short on Eur / Aud instead of Gbp / Aud. Already set a Short at the round number 1.3650.
Thanks for the explanation. Much appreciated. :)
If you disagree with my set-up it would be nice to know. ;)
I agree with it, just like I said – it's the same like other setups I posted above
Good luck
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