Swissy ready to move...

The USDCHF pair has been forming a base over the last four days.

Higher lows with a modest break higher today suggest an attempt at 1.1000 may be seen.

Euro looking vulnerable

The Euro is at the critical 146100 zone today. As the chart shows there is plenty of downside if this large top formation follows through.

However, we always like to keep an alternative scenario in mind as price has reversed and found support from this area several times in the past.

Swissy reversal

The USDCHF pair has reversed today following the completion of the fifth wave, bullish engulfing and Fibs completing, etc.

Provided the pattern holds through to todays close, we can expect a further rally unwinding into the selling that ran since Christmas.

Widening whipsaws

The Euro is struggling with the old high at 14960. Todays peak is within 40 pips and the broadening range whipsaw price action on the 15 minute chart shows currently volatility.

Broadening formations usually lead to explosive moves - one way, or the other. The formation often remains symetrical, as this chart is. Blue lines containing the action.

One way of trading these is to take the reversals at extremes, given some confirmation from the Candle formation that price is about whip back.

Sea change

The Euro weakened as predicted down to an important support area. Price rallied and retested the low today and rapidly bounced back.

Trichet's comments ignited the Euro breaking the immediate term downtrend.

Sideways to higher action is most likely now following this explosive 100 pip bounce

Euro looking weaker

Following the break out higher three days ago, we would have expected the Euro to follow through. It didn't!

Price action is looking that is was a false breakout and these are frequently followed by a sharp move in the opposite direction.

Either an up or down move is possible of course, but we are now positioned to benefit from the downside if this current bout of weakness continues.

An Oil and Gold play

The USDCAD pair runs in sustained trends and, following a rally up to parity with the US$ could it be now resuming it's strengthening trend.

We believe the CAD will continue to benefit from solid fundamentals and a chart that has shown some amazing trends.

Euro at a crossroads

We went long with the Euro up to 1.4750 and that is now the barrier to be broken or we could see a major price rejection.

Technical Analysts can argue the case both ways, the bulls will talk about a reverse head and shoulders pattern whislt the bears point to the quadrupal top formed at 1.4750.

Whichever way it goes, expect a strong move.

Happy New Year - Euro watch today

The Euro gave us good run all the way up to 1.4750 followed by a sharp correction. We are looking at a potential continuation of the correction or another run up.

Whichever way it moves we will go with it.