This week has seen an interesting close that could have important near term implications. One of the interesting developments today was the strong bounce in the Euro in some of the crosses. What are the charts telling us?
The charts for today’s and the weekly close suggest a further confirmation of the overall USD reversal back to more strength, a reversal that could at least see the USD carving out a range of consolidation now, as it is too early to suggest anything more at this time. The case for a stronger USD was underlined by today’s follow up move to the downside in AUDUSD on weakness in risk appetite and also in metals both precious and industrial, which solf off very steeply today.
Chart: AUDUSD daily
The rejection of the move above parity looks rather strong after today’s action. Resistance is now that parity line and then the 0.618 Fibo line that comes in from wherever the pair finds a significant low. The support focus shifts to the 09650 area support and then back to the previous salient high just above 0.9415.
The rejection of the move above parity looks rather strong after today’s action. Resistance is now that parity line and then the 0.618 Fibo line that comes in from wherever the pair finds a significant low. The support focus shifts to the 09650 area support and then back to the previous salient high just above 0.9415.
Chart: AUDUSD weekly
The weekly candlestick also shows a strong rejection of almost the entirety of the previous week’s upside. Note that today’s close is very close to the old 2008 high.
The weekly candlestick also shows a strong rejection of almost the entirety of the previous week’s upside. Note that today’s close is very close to the old 2008 high.
Euro resurgent?
An interesting day for the Euro, which even managed to keep up with the USD rally as the PIGS risk spreads eased today. Some of the closes today suggest that the Euro could continue to perform well in places if this new wave of risk aversion extends – if not versus the USD, then in other places, like..
An interesting day for the Euro, which even managed to keep up with the USD rally as the PIGS risk spreads eased today. Some of the closes today suggest that the Euro could continue to perform well in places if this new wave of risk aversion extends – if not versus the USD, then in other places, like..
Chart: EURAUD
A tremendous move off the double bottom here – suggests that the Euro is still somewhat of a safe haven currency when times get tough, PIGS or no PIGS.
A tremendous move off the double bottom here – suggests that the Euro is still somewhat of a safe haven currency when times get tough, PIGS or no PIGS.
Chart: EURCHF
Even more interesting is to see the strong engulfing bullish candlestick in EURCHF today despite the risk aversion. Is the CHF rally of late overdone? The rally off the lows occurred right at the key 55-day moving average and if the pair is able to work its way back toward the 200-day moving average (black line) in the weeks to come, there is also a very big upside down head and shoulders formation in play.
Even more interesting is to see the strong engulfing bullish candlestick in EURCHF today despite the risk aversion. Is the CHF rally of late overdone? The rally off the lows occurred right at the key 55-day moving average and if the pair is able to work its way back toward the 200-day moving average (black line) in the weeks to come, there is also a very big upside down head and shoulders formation in play.
CHF no safe haven
Also interesting today is the emphatic rejection of the Swiss franc as a safe haven when risk appetite is having a very negative day. EURCHF was sharply higher, as we pointed out above, and GBPCHF saw a follow up move higher as well. USDCHF has closed higher six days in a row now – see below.
Also interesting today is the emphatic rejection of the Swiss franc as a safe haven when risk appetite is having a very negative day. EURCHF was sharply higher, as we pointed out above, and GBPCHF saw a follow up move higher as well. USDCHF has closed higher six days in a row now – see below.
Chart: USDCHF
Note that today was the sixth day in a row of higher closes and also note the 55-day moving average (red line) quickly approaching.
Note that today was the sixth day in a row of higher closes and also note the 55-day moving average (red line) quickly approaching.
Nice weekend and stay careful out there!
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