Weekly Forecast--010112
EUR/USD: This pair is having a rough time trying to find its way through the 4-hour cluster R event. For the time being, it is very predictable where the turning points south are going to be. MT, the daily kijun, currently at 1.3201, looks rock solid. For this week, WR1 at 1.3013 could contain the upside, but the WR2 at 1.3075 looks rock solid. The DOWN still looks like a freefall towards 1.2643, and rapidly decreasing.
USD/JPY: For the MT, this picture is finally clearing up. Quite a long time ago, I was talking about this pair heading to the low 70.00s. That is still the case, and with the strong than usual move we have been seeing of late, this pair seems to indicate it finally got its bearings together. Just to wet your appetite, this years YS2 at 71.34 could be hit. Therefore if we get a return to 79.65, which also the YR1, your antennas should go up.
This week we should see a recovery of the strong drop that ended last week, as we see the pair move towards the WR2 at 77.56. It is possible to see a move a little higher.
GBP/USD: This pair is now facing very strong R at the bottom of the 4-hour cloud at .5590. If the pair makes it through the cloud, then the top at 1.5658 figures to contain. In either event, it figures to be a sharp reversal back to the DOWN that could see the WS2 at 1.5348 being paid a visit this week.
USD/CHF: I figure this pair is still stuck in some tight consolidation. The top of the weekly cloud at .9473 was missed by 5 pips, and Im not content in know the DOWN is ready o resume until it has been hit. What will be hit this week is the WS1 at .9346. What could be hit and is well within range is the WS2 at .9304. Other than that, it might pay to be looking north. If the WR2 at .9470 is hit, then all that is needed is a 3-pip move on the other side to hit the top of the weekly cloud.
EUR/CHF: The bottom of the 4-hour cloud is 1.2211. Combine that with the WR1 at 1.2217, and that should make for a nice confluence of containment for the week. The reversal should take the pair to the WS2 at 1.2103 or lower.
MT, the thing to remember about this pair is that it began a reversal but failed to hit the bottom of the weekly cloud. There has been no momentous thrust behind the move. This pair could still be looking at eventually needing a move to 1.2637 before we see any meaningful reversal.
AUD/USD: This pair still has .9537 on its radar and even much lower. If this pair finishes the week on top of 1.0233, then put 1.0498 on your MT radar before we get the reversal we are looking for. This week solid containment will be seen at 1.0143, which is the top of the 4-hout cloud, and the WS1 is 1.0146, so it is also a solid cluster. The continued move north should take the pair to 1.0333 without much of a problem.
USD/CAD: Containment should be seen this week at the cluster R area of 1.0229. We could see a strong spike through that area to the WR1 at 1.0246. 1.0059 is on the radar, but may not be hit this week as the WS3 is 1.0064, and it is doubtful the pair will move that strong.
NZD/USD: This pair is preparing for a big drop, but for now, is still enjoying the northern skies. We should see the 4-hour cloud broken into this week, and see the pair move to the other side to the bottom at a projected .7702. The WS1 is .7713, so that area figures to hold. The reversal will take the pair back up through the cloud and we will see it break out and rise to the WR2 at .7890.
EUR/GBP: Like many of the euro pairs, this pair is preparing to explode north, but a move farther south is still needed in preparation for the big event. MT, the pair has the bottom of the monthly cloud on its radar a .8167. The pair could break the bottom of the cloud and we see another strong dip, but for not Ill stay with .8167 as containing.
Considering this is the monthly and even 100 pips on the other side is nothing, watch for the YS1 at .8111
There is something else to keep in mind about this pair. This entire downtrend is only a MT correction in a LT UP. As long as circa YS1 contains, it will verify just that. That being the case, the rest of the year points north.
For this week, there will be containment to the upside in the WR1-WR2 area from .8355to .8381. The WS1 at .8305 is virtually on the radar, and a drop to the WS2 at .8279 is even foreseeable.
EUR/JPY: Even though this pair is headed to the low 90.00s, it is dur for a huge MT reversal before it gets there. It may need to move into the high 97.00s before we see the correction take place, and it does not look likely that will happen this week, as the WS1 at 98.86 figures to contain the downside, and the should approach the WR2 at 100.99 on the upside.
GBP/JPY: Any attempt to move higher will be contained by the WR1 at 120.32. We could see the WS2 at 117.84 be hit this week. That is the beginning of the S zone towards 117.64 which could yield a sizeable move north.
platform is NEST by Omneseys,limited version,free provided by the broker.