January 24, 2010

January 24, 2010

This week will be followed by the resumption of the downtrend with the basket of currrencies versus the USD. Look for the majors to ralley early in the week and then resume their fall later in the week. My key focus trade this week is the USD/YEN as it has reached the bottom of the second wave down in five wave Elliot wave series and is ready to resume it's market trend direction (which is up). Key levels are
87.50, 89.06, 90.62, 92.18 and 93.75. I expect the pair to breach the 93.75 level towards the end of the week.
Don't forget to buy the dips in the USD/CAN too as it is still a good trade.