EUR Recovery Continues

Politics is supposed to be the second oldest profession. I have come to realize that it bears a very close resemblance to the first. ~ Ronald Reagan

Good morning. Dollar continues to trade in a narrow range as EURUSD is still consolidating below $1.3300 which is the first resistance level to keep an eye on. German Ifo and US initial jobless claims are today’s most important events on the economic calendar.

USD Index

Not much to add here since yesterday as the dollar is floating on a calm sea lately, in the middle of a range formed by two horizontal lines connecting some of recent tops and bottoms. Selling pressure is still high, while EURUSD keeps pushing on $1.3300

USD Index Chart Daily 2-23-2012

USD Index Chart Daily 2-23-2012

EURUSD

1.3300 is under pressure in steady consolidation, so it’s probably a good idea to consider buying on the break higher.

EURUSD Chart 4hrs 2-23-2012

EURUSD Chart 4hrs 2-23-2012

EURGBP

EURGBP finally breached higher and yesterday’s candle says one thing: “massive short-covering”. One can only imagine how many stops were triggered, given all the failed tests of .8400 since December, hence a lot of sellers in the .8350-.8400 zone with stops set a bit over .8400. In case of a pullback, .8400 is the obvious support to keep an eye on.

EURGBP Chart Daily 2-23-2012

EURGBP Chart Daily 2-23-2012

EURAUD

EURAUD is another pair to join the breakout watchlist as 1.2450-2.500 resistance zone is under pressure. I think it is lagging behind EURGBP, so a breakout could be just around the corner

EURAUD Chart Daily 2-23-2012

EURAUD Chart Daily 2-23-2012

NZDUSD

Daily momentum turns slightly bearish after 3 consecutive negative days. Buyers better be careful while it’s far from the “safe zone” near .8400. I, for one, think that current decline is corrective, but if it re-tests .8250 I don’t think it will hold.

NZDUSD Chart Daily 2-23-2012

NZDUSD Chart Daily 2-23-2012

Silver

Silver is not much changed since yesterday – resistance around 34.50 is still being tested and I think that it’s a good idea to buy on breakout

Silver Chart Daily 2-23-2012

Silver Chart Daily 2-23-2012

AUDCAD

Former support around 1.0660 is now providing resistance and it is being tested at time of writing. Let’s see how this turns out

AUDCAD Chart Daily 2-23-2012

AUDCAD Chart Daily 2-23-2012

Have a great day!

3 thoughts on “EUR Recovery Continues

  1. John

    It will be interesting to see if the political fiasco in Australia has an influence on the AUD. The twist here is that if it all turns to custard for the Gillard Government, what an opportunity for the Liberals…. and then it's into the unknown!

    Reply
  2. Pingback: Dollar Continues Decline; Charts to End the Week | innerfx.com

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