AUD/USD Push Up - December 17th, 2012

The AUD/USD pair had a strong showing on Friday as we managed to push up against the 1.06 resistance level again. This area will have to give way for the Aussie to continue to climb against the US dollar, but we do think this is coming sooner or later. In fact, a break above that level not only breaks the resistance barrier, but it also breaks the top of the shooting star from Wednesday which of course would be a bullish sign in and of itself. Because of the consolidation that we’ve seen lately, we think that the market will not only break above that area, but move to the 1.08 and 1.10 levels going forward.

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GBP/USD is Very Bullish - December 17th, 2012

The GBP/USD pair had a strong showing on Friday as we raced towards the 1.6175 area. This area has been resistance before, but it appears that we are now ready to start breaking out of it. If we can get above the level, we think that a move to 1.63 is all but counted in. A break above the 1.63 level has this pair moving much higher, possibly as high as 1.70 sometime next year.

We are very bullish of this pair, and have been for some time. We have no plans of selling, as we see far too many areas that could provide support. However, a pullback to the 1.610 level would have us buying at the very first signs of support.

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GOLD at Support Area - December 17, 2012

Gold markets did very little during the session on Friday as we continue to tread water around the $7000 level. Just below, we see quite a bit of significant support all the way down to the $1680 level, and as such we would be looking for some type of supportive candle like a hammer or a green one to start buying this market presently.

A long-term trend is far too bullish for us to start selling, and as you know by now we hold physical and ETF forms of gold also. Because of this, we are never actually “short” the market, and will only buy these futures contracts on signs of support or strength. We presently believe that we are in an area that could very well provide a supportive candle, and are simply waiting to see that in order to start buying.

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EUR/USD Monday View - December 17th 2012

The EUR/USD pair broke above the 1.3150 level at the end of the session on Friday, signaling a new leg of in this currency pair. Is because of this that we think a break above the highs from the Friday session will signal that the pair is prepared to grind higher, and aim towards the next major resistance area in the form of the 1.340 level. We actually believe that we will eventually at 1.35, but it will be a grind, not a shot straight up.

This is mainly predicated upon the Federal Reserve and its quantitative easing policies, and the fact that the European debt issue seems to be in the back burner right now. Going forward though, there will be shocks to the system that will cause this pair to be erratic at times, especially considering that we are in the last two weeks of the year which of course is typically low-volume trading.

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GBP/USD Possible Retracement - December 14th, 2012

After the pair's recent rally, it looks like the bulls are priming for a short break. For one, Stochastic is still not in the oversold area and is actually indicating downward momentum. We could see price pull back between the 50% and 61.8% Fibonnacci retracement levels and test the rising trend line too. Then again, if support at the 38.2% level holds, GBP/USD could skyrocket back up to 1.6300.

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