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2012 01 05 Migbank Daily Technical Analysis Report
2012 01 05 Migbank Daily Technical Analysis Report
5 January, 2012
Please note: None of the strategies below represent trading advice or trading recommendations of any kind. Please refer to our full disclaimer.
MA
EUR/USD GBP/USD USD/JPY USD/CHF
Ron William, CMT, MSTA
S-TERM
MULTI-DAY
L-TERM
MULTI-WEEK
STRATEGY/ POSITION
ENTRY LEVEL
OBJECTIVES/COMMENTS
STOP
SHORT 2 34.1300 Sell Stop 3 1.2130 LONG 3 119.40 Sell limit 3 0.9600
Await fresh signal. Await fresh signal. Mild bias to longs. Await new buy trade setup above 80.00. 0.9500/0.9306/0.9176 Awaiting new buy trade setup. Await fresh signal. 120.50/121.50/122.00 Possibly looking to buy short-term. Await signal. Await fresh signal. 1.2010/1.1526/1.1002 Stopped for profit at 1605. Two objectives met. 26.0700/23.3400 (Entered 01/11/2011) 34.1300 1.2250 118.90 0.9700
Notes: Entries are in 3 units and objectives are at 3 separate levels where 1 unit will be exited. When the first objective (PT 1) has been hit the stop will be moved to the entry point for a near risk-free trade. When the second objective (PT 2) has been hit the stop will be moved to PT 1 locking in more profit. All orders are valid until the next report is published, or a trading strategy alert is sent between reports. CH-2008 Neuchtel info@migbank.com Switzerland www.migbank.com
EUR/USD EUR/USD
VIDEO
MIG Bank Webinar: Why the US dollar is likely to gain up to 30% in 6-12 months. US Dollar Interview on Bloomberg
S-T TREND
L-T TREND
STRATEGY
Await fresh signal.
www.migbank.com
Ron William, Technical Strategist, E-mail: r.william@migbank.com, Phone: +41 32 7228 454 2
GBP/USD
S-T TREND
L-T TREND
STRATEGY
Await fresh signal. Mild bias to longs.
www.migbank.com
Bijoy Kar, Technical Strategist, E-mail: b.kar@migbank.com, Phone: +41 32 7228 424 3
USD/JPY
Bears break from multi-day range.
USD/JPY has weakened sharply beneath 78.24 (DeMark Level), as price broke from a multi-day trading range (see hourly chart below). Confirmation beneath 77.25 (pivot level) now helps trigger a third price retracement, that we had been expecting, back to pre-intervention levels and potentially even a new post world war record low beneath 75.35.
Sentiment in the option markets continues to suggest that USD/JPY buying pressure remains overcrowded as everyone continues to try and be the first to call the market bottom, within the end of this multi-year contracting pattern.
This may first inspire a temporary, but dramatic, price spike through psychological levels at 75.00 and perhaps even sub-74.00. Such a move would help flush out a number of downside barriers and stop-loss orders, which would create healthy price vacuum for a potential major reversal. The medium/long-term view remains bullish, as USD/JPY verges toward a major long-term 40-year cycle upside reversal. Expect key cycle inflection points to trigger over the next few weeks, offering a sustained move above our upside trigger level at 80.00/60, then 82.00 and 83.30.
Please select the link below to review our special coverage on USD/JPY. Special Report: USDJPY Verging on a major 40 year cycle reversal VIDEO Webinar: USD/JPYs Long-Term Structural Change Media Reports: CNBC / Squawk Box & Bloomberg
S-T TREND
L-T TREND
STRATEGY
Awaiting renewed buy trade setup above 80.00.
www.migbank.com
Ron William, Technical Strategist, E-mail: r.william@migbank.com, Phone: +41 32 7228 426 4
USD/CHF
0.9550/0.9600 region is expected to act as strong resistance. USD/CHF continues to be a tied to the fate of EUR/CHF and thus the ability of the SNB to successfully maintain its floor in EUR/CHF at 1.2000. We remain focused on the 1.2130 level in EUR/CHF, below which should increase the likelihood of selling towards the 1.2000 level. Thus the SNB may effect movement in USD/CHF in their attempts to control the strength of the Franc versus the Euro. Fresh highs are still anticipated in 10 year Italian sovereign yields, with scope then for a USD/CHF daily chart, Bloomberg Finance LP minor pullback in yields, maintaining downside pressure on USD/CHF. In the absence of the SNB, the yields of Italian sovereign debt are likely to maintain a degree of downside pressure on USD/CHF. 10 year yields in Spain and Italy are currently trading at 5.531% and 6.991% versus 6.478% and 7.355%, before the US Dollar based swap agreement. These yields were trading at 5.416% and 6.956%
respectively yesterday.
S-T TREND
L-T TREND
STRATEGY
Sell limit 3 at 0.9600, Objs: 0.9500/0.9306/0.9176, Stop: 0.9700
www.migbank.com
Bijoy Kar, Technical Strategist, E-mail: b.kar@migbank.com, Phone: +41 32 7228 424 5
USD/CAD
S-T TREND
L-T TREND
STRATEGY
Awaiting new buy trade setup above 1.0425.
www.migbank.com
Ron William, Technical Strategist, E-mail: r.william@migbank.com, Phone: +41 32 7228 454 6
AUD/USD
S-T TREND
L-T TREND
STRATEGY
Await fresh signal.
www.migbank.com
Ron William, Technical Strategist, E-mail: r.william@migbank.com, Phone: +41 32 7228 454 7
GBP/JPY
weakness persist. This is in line with our longer-term view, where it is perceived that there is potential for a much larger recovery to develop with scope for a return to 163.09 and then potentially on to 192.65. However, signs of basing GBP/JPY daily chart, Bloomberg Finance LP are still not evident in the medium-term timeframe.
S-T TREND
L-T TREND
STRATEGY
Long 3 at 119.40, Objs: 120.50/121.50/122.00, Stop 118.90.
www.migbank.com
Bijoy Kar, Technical Strategist, E-mail: b.kar@migbank.com, Phone: +41 32 7228 424 8
EUR/JPY
S-T TREND
L-T TREND
STRATEGY
Possibly looking to buy short term.
www.migbank.com
Bijoy Kar, Technical Strategist, E-mail: b.kar@migbank.com, Phone: +41 32 7228 424 9
EUR/GBP
S-T TREND
L-T TREND
STRATEGY
Missed sell at 0.8425. Await fresh signal.
www.migbank.com
Bijoy Kar, Technical Strategist, E-mail: b.kar@migbank.com, Phone: +41 32 7228 424 10
EUR/CHF
longer-term structure, it is doubtful that 7.500% will cap this rate. In an environment where 10 year Italian yields are trading at, or near, 7.000% it is likely that the Swiss Franc will see a degree of demand despite the low deposit rates available.
S-T TREND
L-T TREND
www.migbank.com
Bijoy Kar, Technical Strategist, E-mail: b.kar@migbank.com, Phone: +41 32 7228 424 11
GOLD
Please select links for in-depth Gold coverage: Special Report Golds mountainous peak at riskbeneath $1600 Bloomberg Countdown CNBC Squawk Box
(BLOOMBERG & CNBC REPORTS)
VIDEO
S-T TREND
L-T TREND
STRATEGY
Short stopped for profit at 1605. Initial two objectives met.
www.migbank.com
Ron William, Technical Strategist, E-mail: r.william@migbank.com, Phone: +41 32 7228 454 12
SILVER
S-T TREND
L-T TREND
STRATEGY
SHORT 2: 34.1300, Objs: 26.0700/23.3400, Stop: 34.1300
www.migbank.com
Ron William, Technical Strategist, E-mail: r.william@migbank.com, Phone: +41 32 7228 454 13
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Notes: Entries are in 3 units and objectives are at 3 separate levels where 1 unit will be exited. When the first objective (PT 1) has been hit the stop will be moved to the entry point for a near risk-free trade. When the second objective (PT 2) has been hit the stop will be moved to PT 1 locking in more profit. All orders are valid until the next report is published, or a trading strategy alert is sent between reports.
www.migbank.com
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