Market Direction for 19 - 22nd of Dec 2011

We should be expecting a new low for the USDollar index for 80.40 - 80.20 or lesser within the trading period of 19 - 22. It is also imperative we trade with caution due to emerging economic down turn from the Euro region - untill this is solved by policy makers, market will remain southwards for EURO.

EUR/USD

At 1.3040; we should buy EUR/USD and take profit at !.3140 ....
The buy direction will be contained at 1.3210 - 1.3212; below this level we should be expecting a sell direction for 1.2950

GBP/USD

For GBP/USD, Buy at 1.5530 and take profit at 1.5630 ....
This direction will be contained at 1.5680 --- However we are expecting a strong bullish movement for this currency pair within the week to 1.5770 level .... below this point we should be expectecting a sell movement for 1.5410.
Be also informed that British economy is on the fragile lane due Euro debt issue; as 50% of the British exported goods depend solely on the EU.

USD/CHF

USD/CHF's rally extended further to as high as 0.9547 last week before forming a temporary top there. Initial bias is mildly on the downside for deeper retreat. But break of 0.9065 support is needed to confirm short term topping. Otherwise, recent rally from 0.8567 and that from 0.7065 is still in progress. Above 0.9430 will flip bias back to the upside first. Break of 0.9547 will confirm rise resumption towards 0.9916 cluster resistance next.

USD/JPY

USD/JPY failed to break 78.28 resistance last week and formed a temporary top at 78.15 and retreated. Initial bias is neutral this week for some sideway trading. Another rise is mildly in favor as long as 77.49 minor support holds. Above 78.15/28 resistance zone should extend the rebound from 76.57 to 100% projection of 76.57 to 78.28 from 77.13 at 78.84 and above.
Nonetheless, note that such rebound is viewed as the second leg of the consolidation pattern from 79.52. Hence, we'd expect strong resistance below 79.52 to bring another near term fall to continue the consolidation, as the third leg. Meanwhile below 77.49 minor support will flip bias back to the downside for 77.13. Break will suggest that recovery from 76.57 is finished and target this support and below.

Have a successful trading week and trade with caution as Christmas is this week!
Remain blessed!