Market update - Jan 13th '09

Looks like charts were kind enough again...

EURUSD: While the direction given on previous reports is still ok, i thought we would have more of a fight to hold support on 1.33 but at the same time the level is clearly 1.324 on the daily chart, and it could even hit 1.321. In the short term, the bias is therefore still down but i reiterate a warning that at that juncture, we may either go all the way to 1.24 (unlikely) or jump back to 1.42+ and energy based indicators favour the latter Fib scenario.

ER: down, oversold, but down. We may have a technical bounce today as the 468 level is still valid but Fib target is 460. In itself, volatility can certainly make this support level stretch to 460 but ER could also fall futher to gather more strength for the cup&handle pattern being formed.

ES: exact same scenario with 875 being the currently valid support level with prices possibly testing 864. As per ER, a lower Fib retracement level could well be the support level from where buyers will jump in (same kind of C&H pattern).

(posted 6.55AM UK)