We have seen the Dollar hammered down once again and we are now looking at some very solid longer term entry points. We start this week off with the Columbus Day holiday with some of the markets closed. We have seen markets squeeze on these low liquidity days in the past so we are keeping an eye out for extreme moves to fade early this week.
EUR/USD:
We have seen it push slightly above the 1.48 handle and while we may still see one final push through 1.50 but either way we are looking to sell into rallies. Proceed with caution because of the high risk of blow off spikes.
GBP/USD:
This pair is still under pressure and we expect that theme to continue over the medium term. For now we are standing aside but should we see rallies back into the 1.60’s we may begin to sell short again.
USD/CHF:
We are still comfortable being long this pair from around the 1.03 handle. This pair continues to be slow to turn but we are confident that in time we will see this pair push back above at least 1.05.
USD/JPY:
This pair continues to see wild volatility as the shift from using Yen for carry trades to Dollars continues. We are beginning to look for long signals but until we see solid harmonic alignment we will stand aside.
AUD/USD:
This pair has poked its head near the .90 level and we are happy sellers near that area. We still see commodities as a sell this quarter and into 2010. Near term we will begin to use spikes as short entries.
USD/CAD:
This pair has led the charge lower in the Dollar. We are now knocking on the door of parity once again. We have high probability that we will bounce before we hit parity. Near term this pair is the highest risk of the majors but keep and eye on it as a barometer of overall Dollar direction.
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