USD Index
USD remains bearish and with the Fed's decision to print money effectively devaluing the dollar I would look for more weakness,
However, next week there is a possibility that the USD Index moves back towards the November 50% levels and 3-week highs:- RESISTANCE
AUD Monthly and Weekly
AUD likely to continue upwards in November, however in the short term I would like to see price retest this week's breakout & 1.0038.
using the November highs as a trend guide:- higher weekly open and sell resistance.
Note:- there is a breakout of the weekly highs that can see the AUD continue highernext week.
AUD Weekly and 5-day pattern
Friday saw a 85 pip reversal down into intra-day support levels and then another 85 pip up move during the US time zone.
If the market is going to go higher then price wil move upwards on Monday.
If Monday is going to reverse down, then we simply use 1.0151 as the trend guide, and first target is 1.0059
Euro Monthly and Weekly
I was surprised to see Friday move down without reaching the November highs, even though Friday's 5-day pattern didn't provide a set-up that suggested more gains
If the USD is moving back towards the November 50% level, then the Euro could be doing the same.
Trend guide @ 1.3893.
If the Euro moves down then we begin to look for a lower Weekly close to test the November 50% level and monthly support.
If this holds then we look for the following week for the next leg upwards and higher highs by 2011
GBP Monthly and Weekly.
Ideal pattern on GBP would be for price to rest the November 50% level support using a lower weekly close...
And then for price to continue towards 1.6775 by the end of the year or 2011
