Trend Continues, as correction concludes 1st phase

USDCHF DAILY as of 010512

The continuation of the rally for the USD can be seen as it is moving higher with a more influential force on the Swiss Franc or USDCHF working at the present price back to 0.9498. Its attempting to reach its initial target at the 0.9550 (R1) with a possible extension nearing the 0.9650 (R2) - 0.9720/50 (R3).

However, there would be no straight directional moves as volume and volatility would only build up towards the third trading week of January. Daily pullbacks for the USDCHF are expected nearing the 1st resistance levels with some price adjustments between the USDJPY as it moves contrary with each other. As the Japanese Yen moves closer to its intervention levels some speculative moves are expected. We would stay clear of the USDJPY and instead work with a cross related trade this coming weeks ahead with the EURGBP pairs, USDCHF and the Aussie.

We are expecting a continuation of a rally for the USD that would occur in the Asian session towards the European market for that particular time period as some major players may soon start building fresh positions for the year. As the 1st corrective phase before the actual rally takes place have been completed. We should be able to pay a closer attention as to volume build-up and open interest for financial futures; as this would set the pace for hedgers and institutions to play with the market before the end of the fist month's trading period ends. Keep track of the reports and price behavior as volatility would increase, so does price fluctuations on both sides would occur.