Thursday, December 16, 2010

Morning Madness

  • Markets saw some sell off yesterday which hasn't hurt the bull cause
  • Bulls continue to hold strong
  • Bears need to take the 1227, 1200, 1173 price levels
  • Dip buying should still remain strong
  • Markets cannot go up forever so some consolidation ore sell off should be expected
  • Will be watching the movements in currency pairs
  • Economic reports were mixed - Jobless claims beat expectations and Continuing claims missed
  • Futures are currently mixed 

EUR/USD broke out of the downward channel and shot up to resistance.  Now it appears to have bounced off the trendline and could head back up.  Further downward movement is still possible, and could gain a lot of support at the 200-150 day moving averages.

GBP/USD had a perfect bounce off of support.  Found strong resistance at the 50 day moving average and quickly sold off.  A break here will be met with added support from the 150-200 day moving averages.  We could see a nice bounce back to resistance.

USD/JPY is still moving sideways creating a bunch of chop in the market.  Found good support from the 50 day moving average where it bounced and created and cup and handle pattern.  A break here will find resistance at the 150 day moving average.  More downside would be expected if the pattern breaks this resistance.

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