• Weekly: Since establishing the 1.07 target on the 1.25.2010 post, the market has gained 250 pips, getting closer to the 1.07 level. Also refer to the alternate the 1.29.2010 video post.
• The weekly time-frame shows strong momentum, though the price action this week has been weak. The 61.8% retracement tested now is providing some resistance. The 78.6% retracement is near 1.08.
• Daily: The daily time-frame shows continuation at the current powerline (1.06 area). The stochastic is showing continuation turning back up into the overbought zone.
• It may be prudent to simply stalk any further rise in the pair, unless we are talking about intra-session outlooks. In the intermediate term, we may want to see if the market will turn the rally into topping action after the completion of th bearish Gartley (see in weekly). A bearish breakout from the current retracement spells further decline below the 1.0 level. The 0.9650 area is the 2008 low and should provide some support at least in the short and intermediate term.
• If the market breaks above 1.08, a significant bullish signal, it may be prudent to anticipate a pullback in a newly established uptrend. For now, this looks awfully like a retracement pattern, except for the strength of the previous week’s rally.

Fan Yang
Currency Analyst
Commodity Trading Advisor

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