Quote of the day:“The only cure for grief is action.” - George Henry Lewes
Good morning. 1.44 is again under pressure as the euro recovered on Friday and the monthly close near 1.44, thus forming a long tailed / continuation candle (see chart below) suggesting that there’s more upside to be seen. Next resistance levels are not far from current trading levels – following 1.4400 at 1.4500/40, 1.4650/90 and the top side of April-May around 1.48. The dollar also recovered a few points against the JPY and CHF on Obama’s announcement of a last-minute agreement between republican and democrats to raise the US debt ceiling. It seems that upside is slightly favored for now, so we shall see how the market reacts on a potential retest of 1.4500 soon. The ISM Manufacturing Index is the top event in the economic calendar today.
Euro Vs. US Dollar Monthly Chart 8-1-2011
Zooming into the smaller time frame:
Euro Vs. US Dollar 4hrs Chart 8-1-2011
And an update to the charts from my Friday post:
EURAUD – it found resistance into the fib retrace zone as expected, so the movement was corrective. Until we see a clear break above the highlighted resistance zone, it’s likely that more selling into minor rallies would occur.
EURAUD 4hrs Chart 8-1-2011
EURJPY – still into range as it found support but buyers should’t get too excited about it. Not yet.
EURJPY Daily Chart 8-1-2011
I’ll check some more charts and share if I notice anything interesting developing across the board. Meanwhile you can share what you’re looking at
Cheers, have a great & sunny Monday!
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