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
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
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
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
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
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
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
Have a great day!
Thanks for the info! :)
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!
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