EUR Under Pressure Ahead of ECB Meeting

Trust your own instinct. Your mistakes might as well be your own, instead of someone else’s. ~┬áBilly Wilder

Good morning. Euro is testing the downside ahead of ECB interest rate decision on best that ECB will hint of further stimulus measures.

USD Index

Dollar bounced off horizontal support and is retesting former support. Next barrier is at 79.50

USD Index Daily 5-3-2012

USD Index Daily 5-3-2012

S&P500

Not much changed, still looking bullish while it holds above horizontal line support

SPX Daily Chart 5-3-2012

SPX Daily Chart 5-3-2012

EURUSD

There’s much selling going on as it failed to hold onto gains above 1.32, eventually breaking above 1.3270/00. Such violent declines often result in more selling into rallies, if corrections are likely.

EURUSD Chart 4hrs 5-3-2012

EURUSD Chart 4hrs 5-3-2012

GBPUSD

There’s a good chance that current decline is corrective. It’s a good idea to keep an eye on it, to see if buyers are doing their stuff around these levels

GBPUSD Chart Daily 5-3-2012

GBPUSD Chart Daily 5-3-2012

CHFJPY

CHF feels quite heavy in risk-off trade, following EURJPY. Hence more EUR selling should result in a breakdown here

CHFJPY Chart Daily 5-3-2012

CHFJPY Chart Daily 5-3-2012

AUDUSD

Recovery was short-lived and downside is again in focus, hence I was wrong a few days ago expecting AUD to continue its journey towards 1.05-1.06. Time to keep an eye on bottom support around 1.0250

AUDUSD Chart Daily 5-3-2012

AUDUSD Chart Daily 5-3-2012

AUDJPY

This 50% retracement was quite a stable support lately. Not sure if it’s a good idea to buy dips, perhaps it’s better to wait for a bounce to buy on strength.

AUDJPY Chart Daily 5-3-2012

AUDJPY Chart Daily 5-3-2012

EURNZD

Upside is back in focus due to risk-off trade, after a fake exit out of the range to the downside. I remain bullish for now, while it keeps pushing on 1.63 – breaking above, eventually

EURNZD Chart Daily 5-3-2012

EURNZD Chart Daily 5-3-2012

have a great day!

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