Weekly Technicals

The Market might see some minor correction this coming week as the market cools off little from last week price action that  saw major rallies especially with the dollar reacting to the FOMC meeting. The Euro/Usd is bouncing off a long term trend line taken for the August 24th last year all the way to Fridays candle close with the 50% fib taken from the 7th of June 2010 to the highs on the 4th day of May 2011 . I will be watching for a bounce off the 38.2 fib taken or a little higher for entry to the downside if fundamentals remain the same with Euro crisis and risk aversion with a slow down in growth for most countries.

USD/CAD may see a correction to the downside coming of the 61.8% fib taken form the highs in may 2010 to the lows in July 26th 2011and the 1.0300 psychological level.The pair had a massive run for the last three days reacting to the FOMC meeting announcements and the move towards the dollar as a safe haven currency forming an indecision candle on Friday which may signal a move lower before we can continue with the current bullish trend that began in July before consolidation and continuation.

As for the Yen pairs i will only remain bullish on dips considering that most market experts are expecting an intervention from the B.O.J at anytime. The current prime minister has overseen three interventions and will have no problem intervening again to help the island nation from the effects of a strong Yen which is hurting the exports.A correction for most Yen pairs may be likely but always stay bullish as the Yen is largely oversold especially the GBP with RSI readings below 30.

Gold plummeted the most in two days after Thursdays announcement that saw silver loose 24%;the most it has lost since my charts can take me back. Gold is rested at the 61% fib taken from early this year to August.If economical releases continue to show a decline in growth and the continued European problems continue to affect the Euro ,we might see a correction in Gold which is expected this week.

Good luck trading to all traders and make sure you do your own analysis before you decide to trade.