Never believe anything until it has been officially denied. ~ Claud Cockburn
Good morning. Dollar pulls back from recent top as EUR recovers towards $1.28, but uptrend remains intact and strong, so it’s most likely only a corrective cycle until the next round of bad news coming from Europe hits. Here’s a daily dose of charts to watch
USD Index
As seen below, former resistance is now acting as support around 81. Even if the dollar would eventually fall below 81, uptrend should stay intact
Dollar Index Chart Daily 1-18-2012
EURUSD
The whole 1.28-1.29 range is forming a resistance zone and it’s being tested for the second time in two weeks
Euro Vs US Dollar Chart Daily 1-18-2012
Aggressive counter-trend traders are probably looking for a breach into 1.28-1.29 zone on the 4hrs chart:
Euro Vs US Dollar Chart 4hrs 1-18-2012
Silver
Silver maintains uptrend recovering above 30, but facing resistance at 30.50 – a barrier which still holds after two attempts. Buying on the potential break is a plan to consider
Silver Chart Daily 1-18-2012
EURAUD
Definitely not trying to catch a falling knife here – but the daily chart is worth keeping an eye on in the coming days, as a correction could be just around the corner.
Euro Vs Australian Dollar Chart Daily 1-18-2012
AUDJPY
Upside remains under pressure as the 80 barrier is being tested since a few days ago. I remain bullish on AUDJPY, currently looking for a buying opportunity on the potential break of resistance at 80
Australian Dollar Vs Japanese Yen Chart Daily 1-18-2012
AUDNZD
It’s been a while since we last looked at AUDNZD, some weeks ago. It was trading around 1.31 but it was providing some clues that a decline was just around the corner. I think that it’s telling the “same story” now and more downside is likely, so keep an eye on 1.2900
Australian Dollar Vs New Zealand Dollar Chart Daily 1-18-2012
Have a great day
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