The Situation on the board has not changed much over the last few trading days. EUR/USD as we expected came down from 1.50 areas and it is trading close to its midterm support 1.4615. It does not look like it is going to fly through it and reach lower levels before Xmas 2009. It is consolidating for now and we will have to see how it is going to play out over the next few days. We favor that there will be correction taking place to around 1.4860-49 area or even possible re test of 1.50 levels before we see any aggressive drop in this pair long term to 1.30 in the 2010. Just does not look like it is ready for further decline yet.
Although any drop below 1.4550 will trigger sell off and we should see 1.4460 very quickly.
We hope to re enter our short EUR/USD which has been stopped out last month at 1.4860-49 level.
Gold chart looks very much similar, although it just touched 50 day moving average at 1110 and it is trading a little higher at the moment.
If gold will show us some correction it will push EUR/USD higher before the end of the year. Bearish below 1105.
AUD/USD and NZD/USD surprisingly come back to higher level but still trading below 50 MA so it remains bearish midterm.
Signals are mixed on AUD/USD at the moment. Possible move up to 0.9255 before this pair will follow EUR/USD.
We will watch this one closely to get good entry at 0.9050 area.
USD/JPY still didn't move much and it's ranging in 88.50. Signals mixed.
We hope that market will see the true value of Yen and we will see USD/JPY breaking above 92.50 which would open the door for long term advance to 114 next year. This pair is trading around the very bottom of massive triangle on monthly chart where the absolute bottom lays at 79.60 from 1995.
There are speculations that this level will be taken out again, but is the Yen really so valuable or Japanese economy so strong long term? With stronger dollar in 2010 we probable see USD/JPY at higher levels than now. Will see.
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