Weekly Review--012212
EUR/USD: The top of the cloud on the 4-hour should contain this week, and we should see the pair continue its move north to the WR2 at 1.3135. The correction should be exhausted by the time the pair gets to the bottom of the daily cloud at 1.3248.
The top of the cloud did contain, at least at the beginning of the week. The dip was 1.2875. We did come close to the top of the daily cloud as the peak was 1.3233 for the week.
GBP/USD: This pair will start the week with a ST correction of the correction it is already in, and there is potential for it to go deeper than its cousin, the EUR/USD. The 4-hour cloud top is 1.5428. If it does not contain, then additional support will be seen at the WS2 at 1.5378. The daily bottom of the cloud at 1.5669 should contain the upside this week. Its favorable to see an eventual break into the cloud and for the top to contain at 1.5786. The 1.5669 level fits in nicely with the WR1 at 1.5656.
As it turned out the dip was only 1.5515. The latter levels were broken, as we came closer to the former as the peak was 1.5739
USD/CHF: The market dipped to a very key level last week at .9305. That was a key decision point. As far Im concerned, that decision has been made. After the correction to the WR1 .9415 has been completed, then the MT correction will continue south. The next leg south should be much stronger than the 1st, as we see the drop continue to the radar at the WS2 at .9193, and a strong likelihood of the WS3 at .9071.
The radar was hit as the pair came close to the WS3 as the dip was .9113.
AUD/USD: A correction will start the week. The MR2 is 1.0493, so it would be nice if it could get hit before the correction begins. Nevertheless, it should be limited to the top of the 4-hour cloud at 1.0369, and then give vent to another rise that could top off at only 1.0555, which is the WR1. If the WR1 does not contain, then the rise could be furious.
I showed earlier just how furious the rise looked after the WR1 was thoroughly broker as the peak was 1.0687.
USD/CAD: There is no doubt the WR2 at 1.0223 contains all action heading north. Its more likely to see the WS2 at 1.0025 hit.
The WR2 did more than contain, as the peak was only 1.0161, and the dip hit .9980.
NZD/USD: The MT .8106 level has almost been hit, and it will be hit this week, as the WR1 is .8105. On the downside, any convincing break of .7986 will mark the beginning of the downtrend. The WS2 is .7965, so the reversal could happen this week.
The move north just kept on moving north as the peak was .8248, 13 pips on the other side of the WR3.
EUR/GBP: If the price gets comfortable around the WS1 at .8267, we would get a correction from that point. After that it could be full speed to the .8167 MT target. The WS3 is .8176, so if the market starts south this week and heads to the WS1, the MT target could be hit this week.
Price never did get comfortable around the WS1 as the dip was .8300. The pair took off to the peak at .8406
EUR/JPY: The drop that ended last week should be continuing into this week. The WS1 at 98.67 needs to contain if the MT correction is going to continue. If that is the case, then the move north should continue to the WR2 at 101.46.
This pair opened the week at the dip at 99.05, and then just kept motoring to the peak at 102.20.
GBP/JPY: The strong upmove that ended last week should continue this week. Containment this week to the south should be seen at the top of the hourly cloud WS1--combo at 119.21. The move north should continue to the WR2 at 121.40. If it makes it to the WR3 at 122.62, that will mark strong containment.
The dip was 119.48 and the peak was 122.03
EUR/AUD: The current price needs to contain. If this pair drops much lower, then it is going to be on to new all-time lows. If the pair falls through the current area, then is on to the WS2 at 1.2203, and eventually to 1.2095. If it holds up, then the WR2 at 1.2463 will be hit.
The pair did continue lower as the dip was 1.2270, 2 pips above the WS1. The peak was 1.2477.
