Monday 7th November

All through last week the Euro drew most attention with Greece's Prime Minister pushing through a vote on EU's austerity plan,which was crucial on the countries membership in the EU. The market's fear for such news meant risky assets fleeing from most currencies and mainly to the greenback. The rate cut during the week and the impending problems in Italy the third largest economy in the Euro zone will weigh heavily on the currency on the coming days. The Euro which lost most of its gains in the previous week was one of the biggest losers and seems to be poised for the same bearish momentum with a close below most moving averages that have compressed together on the weekly chart which may signal further downward momentum should it cross the 3700 psychological number.

The Yen pairs on the other hand seem to have gained some strength after the intervention that saw the Yen move much higher against the greenback early Monday morning. This seems to be short lived against most of the currencies as it gained most of its strength through out the week last week.This week I expect the Yen to continue to gather more strength with a bearish formation candle with most pairs especially the Newzealand dollar and the Euro despite its escalating fears of Italy and Portugal.

The Eur/Nzd pair is forming a weekly triangular pattern that looks to break on the upper trendline that is supported by the 50 day moving average.A break above the 7468 resistance line and the 50 MA may signal further bullish momentum should some confidence come back to Europe in terms of the temporary stop gap measures.

Finally Gold broke out of the bearish flag pattern on the daily chart without much momentum and seems to be headed further up with all the problems being experienced in most countries especially in Europe that seems to be spreading out even to US.With China a major business partner not getting involved in bailing out Europe it may signal further strength for the precious stone to continue bullish in the next few days.

This are my opinions on the this coming week.Make sure you do your own analysis and good luck trading to all.