Friday, 15 February 2013

Emini S&P, beware the retracement brewing? plus USDX & Gold

USDX:Following on from yesterdays and previous posts on the USDX these ultra reliable reaction lines have created a huge sideways pattern -perhaps it could be seen as a pennant and/or diminishing topping pattern? Whatever it is we know that a break out either way will spell out the long term move for 2013 onwards.
We are now approaching the previous upper resistance limit created by the two descending reaction lines

 (as seen in log scale). We either will have a pop up towards 81.00 or see the start of a new high pivot being formed. It was exactly one week ago on Friday that we saw price touch the lower line. It's fair to say that my target for EURUSD is still some way off (1.3150) but we are on the .382 Fib RT level ( viz a viz the Nov 12 low to recent 1.37 high). However Cable has my attention if we hit 1.5450 today which shows a major horizontal ML from the monthly TF.

ES H13.. I am becoming weary about further upside gains in the short term but remain bullish. A subtle change of behaviour is perhaps starting to be noticed. There is always a limit to how many HH and HL's any trend can have and perhaps today we will see a break down after a spurt upwards?

Gold: temporary support at $1615

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