Midweek Thoughts, Charts and Links

Posted by Liviu on March 2, 2011 – 9:18PM GMT in Analysis and forecasts, Links 136952 CommentsMidweek+Thoughts%2C+Charts+and+Links2011-03-02+21%3A18%3A24Liviu

“Regulation of derivative transactions that are privately negotiated by professionals is unnecessary.” – Congressional Testimony of Alan Greenspan, July 1998

Hello folks. I’ve been quite busy lately but nonetheless, my phone is my companion and I had the charts & quotes with me all the time. I finally managed to buy a decent HD media player and the first movie I watched on it was Inside Job. I give it a 10/10 for accuracy & stuff. It also got an Oscar for best Documentary so it’s worth your time. Don’t miss it - i highly recommend it. Now let’s take a quick look at some charts.

EURUSD

What goes around comes around. Typical scenario here. I’m one day ahead of the market to say so *grin* – considering my yesterday plan to buy at 1.3850 on the break higher, just before the pullback to 1.3750. Well, stuff happens. I still have some longs to which I’m gradually adding as long as price moves higher. This potential close above 1.3850 is yet another reason to remain bullish on EURUSD on short-term basis. Tomorrow’s ECB statement is already priced-in and a hawkish tone is what everyone and his dog is expecting. Else – abyss is the limit.

: EURUSD daily chart 3-2-2011

And here’s a quick update to this week’s Charts to Watch article.

USDCHF

Not much happened lately and the pair is still into a consolidation range. Last attempt lower is just a spike (so far) as the dollar is recovering some ground right now. Scrolling the chart back a bit and considering that history has a nasty way of repeating itself – I say that this chart is screaming for a reversal. Even a “lighter” one – like 3 or 5 big figures. But hey, a new selling opportunity, right?

: USDCHF daily chart 3-2-2011

AUDUSD

1.0175/00 is still under pressure after the Aussie dollar dived to 1.0100 where it found intra-day support earlier today. Every single time-frame chart is bullish right now – so, unless your goal is to sell at the (potential) very top – selling at this top is not an option. At least not for me. Metals are helping as they went parabolic again.

: AUDUSD daily chart 3-2-2011

USDJPY

First I wanted to say that the breakdown is underway but when I checked the chart again, after 1 hour or so, USD recovered from 81.50 to 81.90. It looks tempting to sell if we look at overall sentiment but buying is also a decent option right now – only if ready to sell on trendline break.