Market update - Jan 9th '09

End of this relatively uneventful week.
EURUSD yesterday turned lower but didn't quite reach 1.35 then bounced again. I mentioned this short was counter-trend so conflicting forces always make it more difficult to predict exact turning points ahead of the trading day. EURUSD anyhow followed a Fib pattern exactly to its 1st target at ~1.38 to then retrace again. The situation is the same today with a short term upper bias so we may be near the landing zone mentioned in previous report from which the US$ would weaken again.

ER: short term upper bias seems blocked around the 500 key level and as we mentioned a potential airhole (daily chart) we have to remain careful here. However there is still some buying pressure here which could take prices away from this hesitation zone. We'll cautiously follow Fib targets on the 60mins chart for now.

ES: same situation, just a little easier to read. The "airhole" is here more evident, yet targets around 927 and then 950 look so close... ES probably needs to pull back to gather strength unless some positive economic news helps the market move away from this hesitation zone. NB: the ES tick chart also shows hesitation on 906 resistance level but shows some potential for gains today if 907 now turns to support level. Answer in a few hours...

( posted 5:35 AM UK - screenshots available on request )