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Euro Retreats

By Colin Twiggs
April 16, 2009 11:00 p.m. ET (1:00 p:m AET)

These extracts from my trading diary are for educational purposes and should not be interpreted as investment or trading advice. Full terms and conditions can be found at Terms of Use.

Spot Gold

Spot gold respected the new resistance level at $900, warning of a down-trend to test $700. Failure of short-term support at 865 would add further confirmation. Reversal above $900 is now unlikely, but would signal a bear trap.

Spot Gold

Source: Netdania

Euro

The euro displays a bearish descending triangle; failure of support at $1.31 would warn of another test of primary support at $1.25. Upward breakout is unlikely, but would signal a test of the December high at $1.47. In the long term, failure of support at $1.25 would offer a target of parity (calculated as 1.25 - [ 1.50 - 1.25 ]). Recovery above $1.47 is most unlikely, but would signal a primary trend change — and test the all-time high of $1.60.

Euro US Dollar

Source: Netdania

Japanese Yen

The dollar retreated below its new support level at ¥100, warning of a possible bull trap. Penetration of the rising trendline would confirm the signal, indicating a test of ¥87. Until then, reversal above ¥100 remains equally likely, confirming the up-trend and offering a long-term target of ¥110 (the August 2008 high).

US Dollar Yen

Source: Netdania

Australian Dollar

The Australian dollar made a false break above resistance at $0.7300 against the greenback, warning of a possible bull trap. Breakout below $0.7150 and the rising trendline would confirm the signal, offering a target of primary support at $0.6300. Until then, reversal above $0.7300 remains as likely, and would offer a target of the September high at $0.8500.

Australian Dollar US Dollar

Source: Netdania



If we can boondoggle ourselves out of this depression, that word is going to be enshrined in the hearts of the American people for years to come.

~ Franklin D. Roosevelt

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