GBP/JPY all the way to 150.00
GBP/JPY has not closed above its 200-day sma in over a year. The pair has recently tested above this key level and looks set to establish a daily close above the 200-day sma which is currently around 132.10. A daily close above this sma would be bullish from a technical perspective. Additionally, there appears to be a potential inverse head and shoulders patter with neckline around the 133.00 area. The 61.8% Fibonacci retracement level of the decline from August highs to December lows is just above that at around 133.10. If the pair can manage a close above this neckline, it suggests a move higher towards Nov. highs of around 134.20 initially and then towards the 135.00 level which is around the highs of Sept. and 78.6% fib level next. If the pair is unable to sustain a close above the 200-day sma, a correction lower is likely with the potential lower towards the 130.40/60 area where the 55 and 100-day sma’s converge which is also just above the 38.2% retracement level.
Please look at Image below !
http://www.actionforex.c...forexcom/2011020561.gif
EUR/CHF Short-Term Bullish Trend In Long-Term Bearish Trend . This is a trade worth taking !Data is as close of friday 05 2010 .
EUR/CHF – Price action on EUR/CHF (a daily chart of which is shown) as of Wednesday has continued the uptrend that has been in place since the beginning of the year. But over the long-term, this uptrend can thus far simply be considered a minor bullish correction within the context of a significant downtrend that goes back for several years, at least since late 2007. Currently, the short-term uptrend could extend further before potentially turning back down to continue the long-term entrenched downtrend. Key short-term upside resistance resides around the 1.3070 price region. In the event of a breakout above this level, an important upside resistance target resides around the 1.3300 price region, which is not only a significantly tested support/resistance level, but also a 61.8% Fibonacci retracement of the last major bearish run. To the downside, key support resides around the 1.2800 price region, a breakdown below which could potentially begin targeting the all-time low around 1.2400, hit at the very end of last year.
Refer to Image for illustartion
http://www.actionforex.c...rs/fxsol/2011020312.gif
EURGBP to hit NEW lows .After Trichet dismissed rate hikes. This is a NO-Brainer trade.
The story from the 2-year yield differentials also illustrates the GBP-positive outlook against euro. German 2-year govt yields minus their UK counterpart have fallen back below zero at -0.07%. The daily correlation between the GE-UK 2-year spread and EURGBP stands at 0.61. Considering markets pricing for at least one BoE rate hike before year-end, the fundamental dynamics appear to be in synch with the technical picture. Lower highs in EURGBP as well as December and January rebounds, which failed to regain the November highs should likely keep the bulls out of the fray. Expect a prelim target of 0.8350, followed by 0.8150 (Aug 2010).On the daily chart you'll note that the pair has fallen of the rising trendline dating back to August.This is very BEARISH.A short shld be in order for you.
look at the chart below for clarification and illustration.Most importantly note the colleration between the two charts.This couldn't be any better to enter the trade
http://chart.ly/uploads/6a9ptdf.png
THIS IS THE NAIL IN THE COFFIN FOR S&P 500
S&P500 & Dow-30 Flirt OVERBOUGHT SIGNALS
Weekly S&P500 Relative Strength Index shows the highest overbought levels since September 2007. Last week was the S&P 500 fell for the 2nd straight week after it had SEVEN STRAIGHT WEEKLY GAINS. Those gains were the longest winning streak since 2007. IS THIS another sign of an impending top. NOTICE in the chart how there was a LAG in the S&P following the RSI decline.
look at the image .An imminent toppin is in the making.
http://chart.ly/uploads/9rq9njw.pngYour future depends on your dreams so go to sleep !