EURUSD
The euro was one of the main pairs to benefit from dollar’s weakness across the board lately – so it is currently up 400 pips from the bottom reached two weeks ago – around 1.2645. Recent break above 1.2900 is suggesting further upside action as the short-term studies became bullish, hence the whole decline from 1.33 to 1.25 and later 1.26 being corrective in nature. Considering recent strength and the fast recovery from the mid 1.26’ish – it is probably better to look for levels to renew buying, rather than “sell high” – hoping that this is yet another temporary top. Also keep in mind that no matter at which of the two currencies you look – EUR or USD, they are both challenging record levels against others, such as the JPY, AUD, CHF – and, of course, gold. So, which one of the two weak currencies is/will be weaker? that’s the $1.3 dollars question!
- EURUSD 4hrs 9-19-2010
AUDUSD
2’nd attempt against .9450 was rejected, thus forming a double top. Should this be a reversal sign, suggesting further weakness below .9330? Corrective move or not – it is tempting to consider selling around this level – aiming .9200 on first phase and .9000 later. Resume above .9450 negates the scenario, favoring more buying on break towards parity. Frankly, I prefer to buy this pair (again) but I rather do it at some better level. Meanwhile – a correction will be welcome.
- AUDUSD 4hrs chart 9-19-2010
- AUDUSD daily chart 9-19-2010
AUDJPY
Last week BoJ’s intervention to weaken the yen provided a great opportunity to buy the aussie on break against it. Now that the 80 handle was reached – we can see a reversal pattern on the daily chart. Being one of the most risk sensitive pairs lately – we rather take a look at the S&P 500 for some clues regarding next AUDJPY’s move: a triple top – that’s what we see in S&P’s daily chart. Will it hold? I don’t think so. Recent recovery from 1040 was quite strong and judging by how things look now, I’d say it is only a matter of days until we break higher. Therefore, buying AUDUSD on break above 80.50 or 81 – is something to consider.
- AUDJPY daily chart 9-19-2010
- SPX daily chart 9-19-2010
Within the next days I will post some other great setups I identified. You can share the opportunities you see by posting a comment and we will all appreciate it.
Have a great week and happy trading!
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