Market Direction for 20 - 23 of Dec. 2011

USDollar Index Chart 5hours

Although the USDollar index is swayed downwards based on the technical presentation, it's very obvious it maintained an upward momentum but limited at 80.96.
On the summary, we still remain slightly bearish for USDollar index chart for the next couple of days: we should be seeing the first lower low from this point at 80.50 and gradually deep into 80.40.

However; what determines the potency of this movement is the ability of the of the EU policy makers instituting a vaible instrument to avert the looming debt issue that is about disintegrating the EU into seperate countries.
It is important to note that in recent times, the EU government have not been able to do something tangible in order to regain the investors confedience - we will treat this shortly after the next chart ...

 USDollar Index Chart 1hours

Like I said, we will remain slightly bearish for the USDollar index in the next coming days of the week - Please be careful as you sell USD against other currency pairs:

EUR/USD : Daily Pivots: (S1) 1.2993; (P) 1.3039 (R1) 1.3082; & More
EUR/USD continues to consolidate above 1.2946 temporary low for the moment and intraday bias remains neutral. Further sideway trading could be seen but upside of recovery should be limited by 1.3212 support turned resistance and bring fall resumption. Below 1.2946 will target 1.2873 support first. Whole decline from 1.4939 should head to 100% projection of 1.4939 to 1.3145 from 1.4246 at 1.2452 and below.

GBP/USD : Daily Pivots: (S1) 1.5498; (P) 1.5528; (R1) 1.5572 & More
GBP/USD continues to consolidate above 1.5409 temporary and intraday bias remains neutral. We'll stay cautiously bearish as long as 1.5779 cluster resistance holds (50% retracement of 1.6165 to 1..5409 at 1.5787) and expect another decline. Below 1.5409 will target a test on 1.5271 next. Break there will confirm resumption of whole decline from 1.6460 too and should target 1.5 psychological level and below.

USD/CHF

Intraday bias in USD/CHF remains mildly on the downside for the moment and retreat from 0.9547 could extend lower. But still, 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 minor resistance will flip bias back to the upside first. Break of 0.9547 will confirm rise resumption towards 0.9916 cluster resistance next.

USD/JPY

Despite earlier spike, USD/JPY failed to sustain gain and settled back into familiar range. Intraday bias remains neutral and more consolidations could still be seen. But rise from 76.57 is expected to resume sooner or later as long as 77.49 minor support holds. Above 78..28 will target 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.

In summary, I will advise traders to be cautious during these period or permanently stay out of the market till next year; this is a very crucial part in the market. As there won't be much liquidity for investors to play around with, due to the spirit of festivity around the corner.
Market is preparing itself for 2012 as 2011 has come to an end. If you happen to have a live trade still going on into 2012, you are posing a big risk for your portfolio --- Please be sure to stay out of trade during the holiday and close every live trade. IT IS VERY RISKY ... Don't be tempted to do so! Please be smarter these closing period of the market.

Have successful trading experience.