3 JAN 2011 MARKET ANALYSIS3 JAN 2011 MARKET ANALYSIS(This is neither a recommendation nor an advice, it is meant for educational purpose only)

Aud UsdThe Aud Usd formed a triple bar low higher close on

the monthly chart which is a good sign that the audusd will still be heading north.

In the daily chart, price is now backtesting the 1.018 pp. Will be good to watch for bullish price action signal to enter on the 1hr/4hr chart.

Eur GbpThe Eur Gbp main trend is down in the monthly chart, marking lower lows and lower highs. Price too formed a two bar low which is a price action trend continuation signal.

On last week post, i noted that price had broke the previous pin high and the 365 ema. Therefore price should head upwards. On the 1hr chart, there’s a series of bullish price action signals for us to take it up and would have taken either partial or full profit at this time.

Since the main trend is still down, price should retrace and still head upwards temporarily and we should watch for STRONG bearish price action signal to take it back down/

Usd ChfThe Usd Chf formed a double bar high lower close which also broke the low of the previous pin. These are strong price action signals that states the the Usd chf should be heading south in the coming months and the strength of the dollar would stay weak. Given that the FED does not make changes to its $600billion Dollar Printing plan. Correct me if i’m wrong on the figures.Therefore, would be good to enter bearish on the retracement if any.

Lets gear up for a Great Forex year this 2011!Remember Discipline is the key!Lets maintain and Strengthen our Discipline this year together.

Upcoming Important News to noteTues 4 Jan4th-8th GBP Halifax HPI m/m3:55am EUR German Unemployment Change4:30am GBP Manufacturing PMI2:00pm USD FOMC Meeting Minutes

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