Week of 1/28/2013

AUD:



CAD:


CHF:



GBP:


JPY:


EUR: The single currency enjoyed a solid week of gains, extending towards last year's high for a number of cross rates.  While these key swing highs for the EUR/USD, EUR/CAD, EUR,/AUD and EUR/GBP represented a mere pause in the bear campaign, they do coincide with key retracement levels of the 2011/2012 move down.  This could spur consolidation before thrusting higher. That said, short-term bullish momentum remains robust with no signs of a struggle, suggesting a high probability of continued strength.

USD:



TRADE IDEAS:

WEEK OF 1.14.13

USD:
The US dollar is in jeopardy of breaking-down this week as several crosses are threatening key support. Support has been already broken vs the euro, which could trigger theUS Dollar Index to test key trendline support. If broken, the greenback could capitulate lower towards it's 2012 lows. The USD/JPY is also near the key 90 handle, which could limit upside given unprecedented overbought conditions. If, however, there is a lack of follow-through weakness this week, it would mark a bearish exhaustion and could mark meaningful bottoms for the USD/AUD and USD/CAD. This would also shift prospects towards key falling trendlines vs the AUD, GBP, EUR and CHF.

SELL USD vs EUR on rallies, BUY USD/JPY at 88.17/43 region



EUR:
The euro enjoyed a solid week, rebounding across-the-board. The EUR/USD closed at a 9-month high and looks poised to extend to 1.3486. The single currency has also broken-out against the pound, yen and looks to test key resistance vs the CAD and AUD.

BUY EUR/USD AT 1.3288, BUY EUR/GBP AT .8221, BUY EUR/JPY on dips



GBP:
The pound managed to maintain key support levels vs the AUD, CAD and USD, but has broken-down vs the euro. The GBP/CHF, meanwhile, looks vulnerable with key support at 1.4670 likely to be under pressure this week. That said, if the sterling can maintain gains vs the USD, CAD and AUD, it could offset potential weakness stemming from the euro and swissy.

SELL GBP/EURO, SELL GBP/CHF at 1.4820, BUY GBP/JPY dips, SELL GBP/AUD at 1.5350, SELL at 1.5920



AUD:
The aussie failed to break-out vs the USD, CAD, GBP and reversed previous solid moves against the euro and swissy. While short-term momentum calls for additional short-covering, thus far the pullback in the AUD still remains corrective against the USD, CAD and GBP.

BUY AUD/GBP, BUY AUD/USD at 1.0472, BUY AUD/JPY on dips



CAD:
The loonie remains a mixed bag. It looks vulnerable against the euro and swiss, but looks good vs the yen, USD and GBP.

BUY CAD/GBP, BUY CAD/JPY dips



JPY:
The yen remains in a parabolic decline despite heavily oversold conditions. While Thursday's price-action looked like a capitulation, t seems that the yen crosses are poised to test key big figure levels (EUR/JPY 120, USD/JPY 90, GBP/JPY 145 and AUD/JPY 95). That said, a consolidative tone is likely to take hold given daily studies have begun ti negatively diverge.

SELL JPY on rallies.