Daily Observations: November 9, 2012
- Long AUDJPY from 82.08, Stop at 81.60, Target 1 at 82.95, Target 2 at 83.75
- Long EURUSD from 1.2720, Stop at 1.2620, Target 1 at 1.2790, Target 2 at 1.2960
- Long GBPUSD from 1.5975, Stop at 1.5895, Target 1 at 1.6060, Target 2 at 1.6160
- Long EURCHF from 1.2018, Stop at 1.1990, Target 1 at 1.2500, Target 2 at 1.2750
Time Frame: 1-day to 1-week
- Pending Long USDJPY daily close >80.65
I’m overweight risk right now as markets have come off quite quickly the past several days, and are now nearing major levels of support. In the S&P 500, I like being long ahead of 1355, where there’s a confluence of key levels: ascending channel support off of November 2011 and June 2012 lows; the November monthly S2; former swings highs; 50% Fibo on recent bull run over past year.
Furthermore, I’m seeing the pairs covered above coming into some oversold readings on hourly and 4-hour charts, into weekly and monthly pivot levels. I’m playing this potential bounce light across the board given my exposure biased in the same direction, but as long as Gold keeps rising, I’m not too concerned about US Dollar strength coming around to truly damage these positions.
--- Written by Christopher Vecchio, Currency Analyst
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