Quote of the day:“We learn from history that we learn nothing from history” ~ George Bernard Shaw
Good morning. Last week’s euro recovery was indeed corrective and the single currency is trading lower across the board, gapping down over 100 points over the weekend. Short-term sentiment is once again bearish and downside pressure is likely to remain high as Greece struggles to avoid default.
Here are some of the charts worth your attention this week:
EURUSD
There’s a chance that the gap will be filled, therefore keeping an eye on the 1.3800 level is a good idea.
Euro vs US Dollar Chart Daily 9-19-2011
According to COT data, everyone and his dog is, once again, short EUR:
COT Euro 9-19-2011
EURGBP
Clues of a reversal are quite obvious now and, similar to EURUSD, it’s probably worth to consider selling on a potential pullback towards former support zone
Euro VS British Pound Chart 4hrs 9-19-2011
CADJPY
The consolidation continues but in case it exists the range, 81 should be a decent target.
Canadian Dollar Vs Japanese Yen Chart Daily 9-19-2011
AUDNZD
AUD continues to lose ground across the board, so last week’s reversal signal proved to be false and buying around 1.25 wasn’t the best idea.
Australian Dollar VS New Zealand Dollar Chart 9-19-2011
Zooming out to weekly time frame, we can see the major support formed by the rising trendline connecting some of the bottoms since 2009. Although I believe we’ll bounce from here, it’s best to wait for the next sign of reversal.
Australian Dollar VS New Zealand Dollar Chart Weekly 9-19-2011
Have a great day!
told you my indicator said that AUD/NZD is not ready to reverse yet. :-) I will let you know when it fires. :p
what's your indicator, if not a secret? B)
Yup, its a secret. combination of 3-4 different measurements. It does not tell me exactly when to get in or out, just very reliably tells me when its too early or wrong time to short or go long. Saved me from many trades which would have gone bad.
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