Happy Xmas

Nice rounded double-b formation at 1.3080 on EurUsd sees the market now trading higher. Personally i favour the upside in the near term although bearish over all for the €uro. Unless we see a breakout of considerable scale i will post again after Xmas & will also update/add to the pages under construction and will soon post a review of 2010 and my outlook for 2011 covering major futures and currency markets of significant interest to me and including the energy and prec metal markets - both of which have a potentially interesting outlook -viz-a- viz reaction line theory These are just two of many potential opportunities in the markets that we may see in 2011.



















Here below is a trade setup from about 2pm today before the US data using a reaction line failure. Indicators are Macd 7-10-5 , Long B-Line Stoch 35-10-1 with short ribbons & RSI with a sensitive 2 period setting. 200 SMA & B- bands. The retouch on the underside of the RL provided the entry after price made heavy going at 1.3150-1.3156 and the confluence of the the thin grey UMLP & the RL. At that time we had a 'kiss reversal' off the B-line by the short stochastic ribbons (no penetration) plus in the 5 min TF a bearish pair of candles plus double tops formation and the RSI in the zone just under 90 in both 1 & 5 min TF & .50 Fib RT from 1.3180 to 1.3130. The initial stop was above the previous high at 1.3156 and the objective was the aqua blue LMLP at 1.3109 where there is/was support from a warning line previously shown to be effective.































And finally....EURCHF below...a shrewd opportunity or prelude to a disaster? There is a high probability of a small bounce of the LMLP ( even if it eventually goes lower) but could it be more?