Quote of the day: “There’s always somebody who is paid too much, and taxed too little – and it’s always somebody else.” ~ Cullen Hightower
Good morning. The dollar continues to deteriorate against some of its major counterparts, such as euro which is currently changing hands above $1.4500. Next interim resistance stands at 1.4580/00, followed by 1.4700 and 1.4800. Although the currency pair has exited the consolidation range and the top side of May and June are now in focus, chances are that this breakout isn’t convincing and it’s probably best to look for signs of weakness providing selling opportunities. Trichet’s speech at 14:00 GMT is one of the key events in the FX Calendar today.
Here are today’s charts of interest – note that there are some nice setups:
EURUSD
Euro Vs US Dollar Daily Chart 8-29-2011
EURCHF
Most currencies, including EUR, continued to strengthen against the Swiss franc and breached the resistance on Friday, providing a nice buying opportunity as noted in my last report. Setups to consider right now are either long on the break of 1.18 or on a dip to 1.15-1.16
Euro Vs Swiss Franc Daily Chart 8-29-2011
AUDUSD
1.0450 was breached and the AUD managed to climb higher – retesting resistance around 1.0600. I am bullish on AUDUSD, expecting more upside action in the coming days.
Australian Dollar Vs US Dollar Daily Chart 8-29-2011
Gold
The violent correction is over as gold found support near the 50% retracement value of last up leg, and the reversal candle highlighted on my previous post was a clue suggesting that upside is again favoured and we’ll see a new test of 1800. Now we’re above it and it should provide support.
Gold Daily Chart 8-29-2011
AUDJPY
It looks bullish but is still lagging behind AUDUSD which already breached above former support line (horizontal). It’s probably best to look for long setups while it holds above 81
Australian Dollar Vs Japanese Yen Daily Chart 8-29-2011
have a great day and good luck trading!
Both, Aud / Usd and Aud / Jpy look good for a Long but I think I'll wait till NY opening as London is closed today and false breakouts might occur, IMHO. ;)