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Commodity Currencies Plunge Overnight against Dollar

By , Sr. Technical Strategist
20 March 2012 12:49 GMT

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Afternoon Technicals (all charts)

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Morning Notes:

EURUSD – “The specter of 5 waves up from 13002 warns of a deeper corrective decline into 13120/40 before resumption of the bull trend.” The correction appears to be playing out. Watch the mentioned levels (13120/40) as the week progresses. 13210/25 is resistance.

Commodity_Currencies_Plunge_Overnight_against_Dollar_body_eurusd.png, Commodity Currencies Plunge Overnight against Dollar

Prepared by Jamie Saettele, CMT

GBPUSD – “Near term weakness would present an opportunity to get long. Support for Tuesday is 15860 and15820.” The GBPUSD is off of its best levels and nearing expected support at 15820. Watch for support from the Elliott channel (as it is drawn below) as well. Any risk on longs should be under 15740.

Commodity_Currencies_Plunge_Overnight_against_Dollar_body_gbpusd.png, Commodity Currencies Plunge Overnight against Dollar

Prepared by Jamie Saettele, CMT

AUDUSD – The AUDUSD has plunged overnight and already retraced more than 61.8% of its advance from last week’s low (10422), which needs to hold in order for the larger bullish bias to remain favored. A drop below 10422 would shift focus to 10250 (Fibonacci extension). 10510 and 10540 are resistance levels today.

Commodity_Currencies_Plunge_Overnight_against_Dollar_body_audusd.png, Commodity Currencies Plunge Overnight against Dollar

Prepared by Jamie Saettele, CMT

NZDUSD – The NZDUSD has plunged overnight and nearly retraced 61.8% (8147) of its advance from last week’s low (8060), which needs to hold in order for the larger bullish bias to remain favored. A drop below 8060 would shift focus to 7880 (Fibonacci extension and December high). 8195 is resistance today.

USDJPY –No change – “Focus for the month remains 8550, which is defined by the 2011 high and confluence of Fibonacci extensions (100% extension of 7602-8162 / 8001 and 261.8% extension of 8001-8187 / 8058). Bulls are favored against the 3/13 low of 8195. In fact, a small correction may be complete from the 3/15 high.” Move risk on longs to 8300.

To contact Jamie e-mail jsaettele@dailyfx.com. Follow me on Twitter @JamieSaettele

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Jamie is the author of Sentiment in the Forex Market.

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20 March 2012 12:49 GMT