Truth is the only safe ground to stand on. ~ Elizabeth Cady Stanton
Good morning. Euro remains under pressure as rallies continue to face offers, hence selling strength is the best strategy to use nowadays in EURUSD. Some of the key events this week are the ECB, RBA, BOE Interest Rate Decision and EU leaders summit in Brussels on December 9. Both ECB and RBA are expected to cut interest rates by 25-bps, while the BOE is expected to keep rates unchanged.
USD Index
Recent (double) top is still in focus while support at 78 holds. Price bounced off support on Friday, so upside remains favored.
USD Index Chart Daily 12-5-2011
EURUSD
Friday’s rally has been short-lived and downside is again under pressure as the euro is orbiting around 1.3450 at time of writing. Potential selling points I’m considering are 1.3550/50 (recent top zone) and 1.3350 – if it resumes decline.
Euro Vs US Dollar Chart 4hrs 12-5-2011
GBPCHF
No change of plan here, as the Swiss franc is getting hammered by circulating rumors of SNB’s interventions on a regular basis. Holding long with decent stops or buying on the break above 1.4380/00 are the only two bets I can think of.
British Pound Vs Swiss Franc Chart 4hrs 12-5-2011
AUDUSD
Well, a correction shouldn’t come as a surprise after such a strong recovery seen last week, but RBA’s upcoming rate cut and more risk-off trade on Europe’s debt crisis are likely to favor more weakness for AUD. I think it’s worth keeping an eye on intraday support zone around 1.0200, eventually selling on a potential breakdown
Australian Dollar Vs US Dollar Chart Daily 12-5-2011
Have a great day!
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