Charts I am watching

I know I promised to post UBS' team 2011 outlook but I am struggling to attach it on this site (if you know let me know how I can do it). So, I will save it on scribd and then post the link tonight. As i said, at the end of the year I like to go through some reports and see how authors' predictions fared, what i knew then and what i know now with hindsight, could i have expected it and so forth.


EURUSD  - Major downtrendline broken - we are now in the sell the rallies mode

BUT pay attention to the RSI divergence. It is likely we test the broken downtrendline before downside acceleration.

4H chart – The pair is likely to test the bottom of the downtrend channel at 1.3230 & if it manages to get back into the channel, then 1.3283 (red line) is the next resistance. And if, big if, the pair makes above 1.3283, then the upper part of this channel is likely to stop the bounce. In particular, 1.3321/25 area is where the upper part of this channel meets another resistance line (higher red line) at 1.3321.  Also, major broken downtrend is nearby at 1.3340.

GBPUSD - Green horizontal lines are Fib retracements. The pair was in the large range, broke down but now trying to get back into the range. More work needed. Clearly, fall below 1.5536 is likely to bring the pair back to the bottom at 1.5436.

USDCAD – the body of the range is between 1.0262 and 1.0074 and this range is one way to trade this pair. But when the price breaks out of this symmetrical triangle, expect some action and hopefully large profits.

AUDUSD – uptrendline break will ultimately accelerate downside move. Symmetrical triangle break should be the first sign of bad things to come for Australian Dollar.

4H chart - Watch out for the downside if that blue uptrendline is broken. On the upside, four hourly close above 1.0226 is likely to lead to 1.0300 at a minimum.

CHF - USDCHF and GBPCHF made new highs but if you extend charts bit more, you will realise oth are testing previous highs Hopefully, higher we go. Stop losses better be below uptrendlines. AUDCHF successfully tested the top of this Right Angle Triangle. I would keep my stops t 0.9300.

Good luck.

P.S. Tonight I will post the scribd link.