Midweek charts to watch 6/6/12

If someone in your life talked to you the way you talk to yourself, you would have left them long ago. ~ Carla Gordon

Good morning. Dollar is in correction mode while the euro is recovering some of its recent losses. Other risk-sensitive pairs are recovering and there are some reversal patterns across the board, mainly in highly correlated pairs, suggesting that an extended correction is due. The ECB rate decision is today’s key event.

USD Index

A solid hint of this correction was the reversal bar formed after reaching a fresh top. Next support to keep an eye on is at 82 and I think that’s easy to reach

USD Index Daily 6-6-2012

USD Index Daily 6-6-2012

S&P500

It seems that the bear flag formation was valid, hence the strong decline below 1300 – which became resistance.

SPX Chart Daily 6-6-2012

SPX Chart Daily 6-6-2012

EURUSD

EUR finally found some relief and is climbing towards 1.2600 which provides the 1st short-term support. Short-squeezes are normal in such strong declines

EURUSD Chart Daily 6-6-2012

EURUSD Chart Daily 6-6-2012

USDCHF

Correction continues, .9530 being the key support level to keep an eye on

USDCHF Chart Daily 6-6-2012

USDCHF Chart Daily 6-6-2012

USDCAD

Recovery went out of steam and the Canadian dollar is recovering, therefore support formed by a rising trendline is being tested. If it breaks, it should be rather easy to reach 1.0200 in the next sessions. That’s the next support

USDCAD Chart 4hrs 6-6-2012

USDCAD Chart 4hrs 6-6-2012

USDJPY

Resistance zone formed by a horizontal line and the downward trendline connecting recent lower highs is being tested and it seems that a breakout is just around the corner. Buying on the potential breach of 79 is a plan to consider

USDJPY Chart 4hrs 6-6-2012

USDJPY Chart 4hrs 6-6-2012

NZDUSD

Resistance zone is again in focus as NZD recovers. Maybe bulls are luckier this time

NZDUSD Chart 4hrs 6-6-2012

NZDUSD Chart 4hrs 6-6-2012

AUDUSD

Same as NZDUSD, as both pairs are highly correlated.

AUDUSD Chart 4hrs 6-6-2012

AUDUSD Chart 4hrs 6-6-2012

AUDJPY

No important resistance levels are seen up to 81 – 83. So there’s a lot of room for this correction

AUDJPY chart daily 6-6-2012

AUDJPY chart daily 6-6-2012

have a great day!

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