FX Weekly Report

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Daily volatility is increasing in all markets including Forex
Mon, Nov 2 2009, 01:34 GMT
by Pierre Charlebois
Trading Metro
The markets are definitely moving towards a break-out or reversal as daily
volatility has returned. As the long-term trend has been quite one-sided it
stands to reason that this could signal a larger reverse.
I will caution that there is always a chance the trend will end with a bang
and a further push to new highs and lows on some currencies pairs is possible.
The other consideration of course is that a strong pull back in wave 2 on the
Index is also a possibility. However I think the bottom line is to look
for further USD strength in the bigger picture.
USD Index - Looks impulsive - A three wave pull back and continuation would
bolster the Bullish USD view

EUR/USD - The long term trend-line is at risk - A bounce or new high is possible
but I believe the upside is limited

GBP/USD - A new high or drop have about equal weight possibility on this pair.
Of course the downside level to watch is 1.5706

USD/JPY - Yen strength and Dollar strength correlate when risk aversion is the
theme. The move up looks corrective so downside is possible mid-term

USD/CHF - I'm not sure what the sort-term EW count is, However 1.0287 could be
the key level

USD/CAD - Friday's closing price of 1.0818, is a key pivot point the
this pair

AUD/USD - Like the EUR/USD, a top is not guaranteed but a new top should signal
a new drop

NZD/USD - This pair should bounce but further drops would be expected

EUR/JPY - Key levels are 1.40 and 1.30

Published on
Mon, Nov 2 2009, 01:34 GMT
Archive
- Daily volatility is increasing in all markets including Forex
Published On Mon, Nov 2 2009, 01:34 GMT
- More USD strength is likely but I still question the overall trend
Published On Mon, Oct 26 2009, 04:44 GMT
- Dollar strength still not a given... But
Published On Mon, Oct 19 2009, 02:27 GMT
- Dollar could gain more this week - Critical juncture on Index
Published On Sun, Oct 11 2009, 23:19 GMT
- USD on cusp of break-out - But will it happen in earnest?
Published On Mon, Oct 5 2009, 03:45 GMT
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