This Might Turn Out To Be A Great Long Opportunity
Some strong comments regarding the EUR/USD move by ECB president Trichet sent the EUR lower overnight before bargain hunters saw 1.2905 as potential support. Swiss and French banks were among the largest sellers, with Chinese interest on both longs and shorts. This might turn out to be a great opportunity to establish longs if support is held.
GBP/USD: The 1.8600 level is the last major barrier we see to any further upside has held for now. Short-term models show support at 1.8500-1.8520, although daily model is showing some signs that a move sideways to down may last for a few days as some technicals are not confirming the recent move to 1.8600
USD/CHF: is showing some signs of strength early on here, however, unless some solid data comes out in favor of the dollar, do not get too excited as 1.1847 and 1.1925 are formidable resistance levels.
AUD/USD: as mentioned in the previous email, there was an opportunity for a short in AUD/USD last night, but given that we were fighting the trend, we took a small profit at minor support, .7580.
AUD/CAD: finally a break lower, the daily and weekly are now clearly in a sell signal mode. Short-term models show any moves to the upside should be capped at .9070-.9084. After the patience we
exercised on this trade, we need to be rewarded with a big move lower.
EUR/AUD: while this pair has meandered higher overnight, the underlying technicals simply do not confirm the price action. We are seeing some weakening right now and a move back below 1.7000 would break the short-term bull trend-line from yesterday afternoon.
EUR/CAD: looking to re-test October low at 1.5418
As always, feel free to send me your comments and questions.