Happy New Year to my Valued Readers & my almost 1600 Twitter Followers!

Well the Euro continues to lose value against the US dollar. I thought the channel at 1.3250 may hold but no such luck. We have now seen the Euro bounce off the 1.2864 resistance level and we will see if it holds.  If the Euro keeps tanking we will see more pressure on the stock market.

All the year end selling was done last week and now we have the seasonal rise in the market. RRSPs are often topped up before the end of February and people use the contributions to buy investments.  I would also guess that there is a lot of $$ sitting on the sidelines waiting for the markets to tell them it is time for a run. 

Hello,

Well on November 23rd I blogged that the EUR/USD was looking to break after the US dollar's recent high of  1.2328. The chart presented was at 1.2638 when I commented.  The USD is now trading 1.3726 and banging on the 38.2 fibonacci level. That is about a 11 cent move in just over 3 weeks. 11 cents = 1100 pips x $10 per pip on a full lot = $11,000 profit if you held from then till now.

[ View 4HR EUR/USD Chart ]

Hello Everyone,

I just thought I would show you a chart. The US $ has been in a triangle and is being pinched. We should see a break out this week, probably several cents in one way or another.  The lower support line which has been tested twice has held up (line in yellow) and the upper barrier (pink) looks like it is being breached. The pinch is tightening between the upper channel line (white) and the lower support (yellow). It has been trading in a range for a few weeks and the range is tightening, we should see some good action very soon. 

If we draw the Fib from the upper double top (green line) to this recent low in October (Purple), we see the levels where the EUR/USD could test. The levels are shown in red.
[ View 4HR EUR/USD Chart ]