The first week of the year ended up providing some fireworks and not just on New Years eve. I am expecting to see the Dollar begin to weaken from here so selling Dollar strength is the name of the game going forward. Look for markets to start moving with greater magnitude over the coming weeks.
EUR/USD:
This pair did break the uptrend but frankly is smells like a shakeout. I am a buyer of additional weakness in this pair early this week. I expect to see it push back above the 1.32 level near term.
GBP/USD:
This pair is still moving sideways. I remain a bullish buyer of weakness here too. I am looking for the cable to make a run towards 1.60 towards the end of the month.
USD/JPY:
This pair still cannot seem to get out of its own way. I do not have much in the way of expectations here but I must say that this is the one exception to the general theme of selling Dollar strength. In this particular pair I in fact want to sell Yen strength. Any Major dips are buying opportunities. Still looking for a move towards the 87.00 handle.
USD/CHF:
This pair is also simply stuck. Near term we see it continuing to be manic depressive so the best bet is to focus on other markets.
USD/CAD:
This pair continues to do the two step with parity. This is likely to continue near term but I am looking at buying dips to new lows.
AUD/USD:
I talked about selling above 1.02 last week and if you did that I would now cover and look to buy dips near the .9850 level looking for a run back to and through parity.
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