With the market holiday, recognizing Dr. Martin Luther King Jr. day has always been a welcome treat for the US market traders. However, the mix economic reports driving the US Dollar lower is still consistent to our outlook from the closing of the year 2009. Where we have mentioned that the gradual upward rise of the US dollar as measured by the trade weighted average of the USDX trading range from i'st low price level of 76.60 last week from a low of 74.31 registered in December is to move higher. This has made the initial leg of the US dollar to be intact in spite of it being within a major down trend from last year's overwhelming bearishness. The true range is 78.80 probable high and the 74.31 sets its initial support price.
With that said, the USD/CHF low of .9969 also registered in December is now considered to be its major support and gradually worked its way back up to the current working price of 1.0254 from an initial high of 1.0507 which happens to be the mid-range price from its HI/LO prices.
The first key price signal for another upward assault is breaking the 1.0380. The significance of which is only the steadier USD/CHF vs. the USD/JPY is more defined amongst the major pairs contrary to the EUR/USD movement against the GBP/USD.
The cross rate of the EUR/GBP has had a squeeze as reflected on this weekly chart with a wide trading range both up and down for the past few weeks prompting it to move lower for this week. There is no significant price reversal only a corrective movement on a day to day basis.
So the directional expectation for the EUR/USD and the EUR/GBP is to head lower than it low price of 0.8850 last registered in December. This may be considered a probable trade to look into. However, risk in trading the cross without the majors to hedge it with may seem to be risky but otherwise watch for the breaks on the lower side of the EUR/GBP cross.
The continuation for the Gold prices to move higher is still there as the initial target of Gold is at the $1158.00 - 1160.50 within the next weeks or earlier. If no dramatic news or economic reports that may influence it otherwise then expect Gold to move back up in spite of other considerations.
Meanwhile the Aussie and New Zealand Dollars are on its way higher as the AUD/USD is currently working at .9262 and .7380 respectively. A probable selling pressure may occur only due to profit-taking and position liquidation from previous trades made last week. The high breakouts may take place within this week as long as the volumes do increase in the financial futures which is where we measure the VOI taking place on aweek to week basis.
With that said, the USD/CHF low of .9969 also registered in December is now considered to be its major support and gradually worked its way back up to the current working price of 1.0254 from an initial high of 1.0507 which happens to be the mid-range price from its HI/LO prices.
The first key price signal for another upward assault is breaking the 1.0380. The significance of which is only the steadier USD/CHF vs. the USD/JPY is more defined amongst the major pairs contrary to the EUR/USD movement against the GBP/USD.
The cross rate of the EUR/GBP has had a squeeze as reflected on this weekly chart with a wide trading range both up and down for the past few weeks prompting it to move lower for this week. There is no significant price reversal only a corrective movement on a day to day basis.
So the directional expectation for the EUR/USD and the EUR/GBP is to head lower than it low price of 0.8850 last registered in December. This may be considered a probable trade to look into. However, risk in trading the cross without the majors to hedge it with may seem to be risky but otherwise watch for the breaks on the lower side of the EUR/GBP cross.
The continuation for the Gold prices to move higher is still there as the initial target of Gold is at the $1158.00 - 1160.50 within the next weeks or earlier. If no dramatic news or economic reports that may influence it otherwise then expect Gold to move back up in spite of other considerations.
Meanwhile the Aussie and New Zealand Dollars are on its way higher as the AUD/USD is currently working at .9262 and .7380 respectively. A probable selling pressure may occur only due to profit-taking and position liquidation from previous trades made last week. The high breakouts may take place within this week as long as the volumes do increase in the financial futures which is where we measure the VOI taking place on aweek to week basis.
Good Luck and Happy trading!
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