Tuesday, 10 January 2012

Rallies for S&P 500, EUR/USD, ASX 200, AUD/USD, Gold & Silver

The six components of the Undollar complex that I watch most closely have all rallied this week. The S&P 500 and EUR/USD are engaged in trend line tests where the outcome could decide their direction for months to come. Of course, the direction of these two markets will strongly influence the other markets.

The S&P 500 is still testing the neckline zone from the 2011 Head and Shoulders top.

Can the EUR/USD complete a bullish false break below the trend channel? Unless the EUR/USD beats that trend line to the upside, pressure will remain for new lows ahead.

The ASX 200 has also rallied, once again rising away from the up trend line formed from the October and November lows.

The AUD/USD has rallied also, following a lower open to the week.

And Gold, following December's false break below the September low.

And Silver.