Euro Weekly and 5-day pattern
The Euro has moved back towards the December 50% level @ 1.3307.
This could stall the euro from rising upwards, but there is a possibility that the euro continues towards the January 50% level.
However, for Friday the trend guide is brown filter.
Support as shown around the 5-day 50% level.
above the brown filter and it continues towards Friday's highs.
If the euro continues towards the friday highs, those highs will then determine if next week begins with a 2-day reversal pattern that can lead to far more downside (below the Yearly 50% level)
or as we have seen many times in currencies....
the following week continues to trend upwards, as illustrated in the book.
AUD Weekly and 5-day pattern
December highs reached precisely @ 1.0197... and that completes the entire 4th Quarter pattern.
My expectation continues to be, there will be higher highs in 2011 ;- minimum
move (January highs)
Why?
AUD is currently trading above the 2010 highs @ 97.86, therefore it is trying to extend up towards the 2011 highs.
Secondly, AUD tested the December 50% level, therefore there's an expectation that the trend is following a 2-month wave pattern into higher highs. (January)
However, once these December highs have been reached the trailing Weekly
levels come into play from next week.
If there's any weakness in the short term, then the next long set-up
would be based using the Weekly lows.
If that happens, this can then provide the next support level for a
move towards higher highs in 2011 later in January.
Today:- 5-day 50% level support, which matches the Weekly highs @ 1.0111
I can't be bullish on AUD in the short-term with the market coming down from the December highs and trading below the daily channels.
- All Daily forex reports are written before 11.00am Sydney Time, which is approximately Midnight GMT
