Friday, December 05, 2008


Always good to see that my good old crystal ball is still working as new... :)
€/$ bounced exactly on my support level, and a fantastic long followed right to top resistance level. Former resistance level i should say as range is now expanding north. €/$ should consolidate just above 1.27 to then march higher probably to ~1.287
ER also crept higher, although unconvincingly, so the following retracement was very much expected. Here again we are looking at a support in the current area although we'll keep an eye on an alternative support around 423 if 437 breaks.
ES was kind enough to behave and reach spot-on our resistance level before retracing. It could try and reach ~870 again to attempt a breakout north. Conditions don't seem right just yet though, but we'll be watching.
More likely is a continuation of our market consolidation. The market is almost ready to recover so as always patience is a virtue...

(posted Fri 5th 12:24 Eastern)