AUD/USD: 0.9180 EUR/USD: 1.3100After yesterday's dollar collapse following Bernanke's outlook on life, we have seen a mild recovery to close roughly in the middle of the days wide range and with not too much data out today it looks like being a choppy but directionless session ahead, as it attempts to recover its feet.
Wherever we finish up today I suspect it will be pretty much in the middle of yesterdays range and if it is right around here, I would not be surprised.
Look to use 1.3000/1.3160 as a guide in the short term, with dips looking like buying opportunities given that the 4 hour charts continue to point higher. Having been knocked around yesterday, I suspect that most traders will want to stand aside today to lick their wounds - me included! - and being a Friday there may be better things to do. It all looks rather directionless for the next few hours and a neutral stance is needed for the coming session, but buying dips is the mildly favoured bias.
In the longer term, the daily charts have also turned higher while the weeklies are flat and thus, as we head into the northern hemisphere holiday season, it appears that we are going to gyrate in choppy fashion, not too far from 1.3000. A 1.28/1.33 range for the next month or so would not surprise.
Economic data highlights will include:
EU Industrial Production, US PPI, Rts/Michigan Consumer Sentiment Index
