Thursday, December 11, 2008

Where is the US$ going ... ?

Same easy ride, with €/$ now reaching its target around 1.305. This is the high of the daily range so some profit taking is possible. Again the change in mindset is now visible and a range breakout could lead to 1.37 in a matter of a couple of weeks. We need to check behaviour on this key resistance level. EURUSD could retrace to 1.2966 or right down to pivot level to 1.293 which looks like a much better support level to then take prices higher. At this point in time (12:30 AM) bias is still up.

A daily range of 17 points for ER almost looks like a calm day. We do see a mild upper bias, with prices hovering relatively high but could still go both ways. Maybe a good time to tighten stops.

Exact same scenario for ES where we now see some hesitation after retracing up to the Fib PR2 level . We maybe need now a pullback to 875 to then attack the high 900s. Overall the bias is still up so one should just hang on and safely move stops to just below 875.

--- QUICK UPDATE 12:45 AM ---
€/$ seems to be breaking out already