As Macro-Man pointed out yesterday, there is the potential for a "tape bomb" from Mr Trichet. After an impressive rally from the lows EURUSD is coming up on trend line resistance from the Dec09 highs.
Cable has traded sideways this week after a six week rally off the lows and a sharp dip here would not be a surprise but with the risk rally looking set to continue I would buy any dip back to 1.48, Cable is also close to descending trendline resistance from Oct09 highs and a break of the trendline sets up 1.5550 next resistance. Cable is also a bearish Gartley fibonacci pattern (invalid above 1.5350) a pattern that has a 70% success rate so I am holding onto my other sterling shorts into the news.
EURGBP is approaching previous resistance at 0.8382 which is also fib resistance, but I expect it to take out that swing high and I would be a buyer of dips looking for 0.8420
AUD added 46,000 jobs last night vs 15,000 expected and has broken it's descending trendline resistance and my upside target.
All in all this risk rally looks set to continue. The 87.00 level in USDJPY that I mentioned last week has held and JPY crosses look like good buys again. EURJPY inverse head and shoulders projects a target back at the top of the range at 114.00 and I am looking for a buy entry on a pullback to the 110.85 area.
Gold has retested the breakout level at 1207 and shorts look good to continue.
US unemployment this morning might take the shine off the rally. How this weeks candle closes is very important for the indices, failed patterns (like head and shoulders) can be powerful trades.
GBPCAD closed 50% @3R 1.5845 (+1.5R)
AUDUSD closed 0.8740 past target and 78fib (+2.2R)
GBPAUD closed balance 1.73 target (+2.5R)
CRUDE closed 25% @6R 75.30 (+1.5R)
USDJPY closed 50% @3R 88.20 (+1.5R)
USDCAD short 1.0600 stop 1.0630 PT 1.0410 - 1/2
GOLD short 1199 stop 1209 PT 1166
CRUDE LONG 72.30 stop 71.70 PT 75.00 - 1/4 position
GBPCAD short 1.5995 stop 1.6045 PT 1.5610 - 1/2 position
USDJPY long 87.30 stop 86.90 PT 89.20 - 1/2