On the weekly charts the EUR/USD 50% fibo at 1.3572 while the daily SMA100 lies at 1.3522 which also happens to intersect with the upper bollinger band. The daily the correction target aims at 1.3220 - 1.3180 where I expect a final bull move towards 1.34 - 1.35 levels at which point the weekly 50% fibo, SMA100 daily plus daily upper bollinger band will offer some solid resistance for a short opportunity.

As for commodity pairs, I prefer selling AUD/NZD. The weekly and especially the monthly charts are very bearish. This pair has some distance to correct all the way to 1.26 before so solid support comes in. Failure of support at 1.2600-50 level would lead to a larger correction to 1.24 - 1.2380 level. This also means the Aussie will be weak during January.

A matter of patience to see where we headed next,

EURCHF looks bullish waiting for a break n hold above 1.2936 to enter long

@qw I gess you are right but EURUSD, I will hold trading it for some few more hours

EURCHF I will be trading it

USDCHF BEARISH & might test 0.9325 area.

What a week. Plenty of opportunities but I still managed to post losses. Sorry for not keeping u posted, promise to update u on my trades next week.

What is binary options...?

@QW we share same sentiments, let's see how it plays out.

I am tempted to enter a weekly EUR/USD short after the reversal at 1.36 level just as I had anticipated on post 642. But there is still scope for the bulls to attempt a run to the weekly 61.8% fibo - 1.3720. I failure here would be more bearish than the current 50% fibo failure. Unless the EUR/USD hold above 1.3750 for 2 daily closes, I maintain my bearish stand - too much debt trouble in Eurozone.

Short order put for a weekly short on AUD/NZD at 1.3150 (if it is reached). TP1 - 1.2850, TP2 - open, SL - 1.3210 (monthly
high).

@Fxtech - USD/CHF currently looks bearish as per candle patterns, but the weekly RSI is positive and the monthly RSI is neutral. I don't think we will see a major weakness on this pair considering EUR/USD will struggle to hold the 1.37 handle and the USD index shows scope of pushing up. Once EUR/USD confirms this scenario, I'll play the inverse positions - long USD/CHF and short EUR/USD. You are right to state the $ is no longer safe haven (too much US debt issues), but the whole FX game is pegged on it and the current global debt issues means a rally in the $ is likely due to credit crunch version 2.0 once QE runs dry in Q1 2011. I don't see scope for QE3.0 since QE1.0 & the current QE2.0 have had no effect at fixing the rot in the system. At some point the US fed bank has to hike rates and it will be painful to the markets. I've always wondered what happens when the $ is killed, how will FX work with a basket of currencies as a peg? The game might be changed to fixed rates and that means an end to FX trading. It is on this premise that I always make monthly withdrawals (profits) just in case...

Gold/Silver are a short sell beauty at the moment, but with sovereign debt crisis in Europe and state defaults in US, I can't risk a short.


S&P finally touch 1300 and reversed - the daily was overbought as well as the weekly. Dow is also overbought on the daily and weekly. Nasdaq is now bearish on the weekly and I'm already short from 2302 (NASDAQ100) TP at 2190. The last time the US market had this stack divergence was in Oct/Nov 2007. I expect a correction on all these markets in coming weeks, but the Dow is more compelling for a better short reward.
@QW - I didn't make any money from the S&P rally in Dec. I have stated severally on various post here at wazua that the US markets are irrational to say the least. I'm bearish the US markets as well as the euro markets plus their euro currency too.

"According to the Dow Jones Newswire, a few big traders have been putting massive shorts on GBP/AUD, which weighed down heavily on the pound pairs."- Babypips