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$GBPUSD headed down

Cable has taken out the .618 fib retracement ( 12/06/10 high and 12/28/10 low) and headed down.  Watch for consolidation at the 1.5391 area and a break of that should give us a double bottom @ 1.5346 as the cross finishes the range. A break of the bottom targets the 1.5302 ( S4)  and then the 1.5252.  due to holidays and low liquidity anything can happen but momentum is likely not there to drive it.

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$AUDUSD should go to target

Cross has moved to the R6 (1.0152) after finding support on the 2.618 fibo extension and should move to target at 1.0188 which is the former top set on 05/11/2010.  Currently in a ascending wedge which is bullish for the cross.  Should see a small pullback to the channel line before breaking to the 1.0188 target. . A break here targets the support at 1.0249 4.236 Fibo. A break back to the south targets the 0.9997 area. Due to New Years there will probably be much NOT much momentum to drive crosses very far.

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Market Makers padding the books

This time of year, the Market Makers (MM) have the opportunity to really pad the books.  Dumb money is the sacrificial lamb.  MM move the market quickly and suck the dumb money in then reverse.  MM can pocket millions of dollars in the next few days.  How not to be the dumb Money?  Use the 6 Aces and WAIT for confirmation then enter using the 3 min chart.  Near the top and bottoms of the ranges look for reversals.  These runs are going 100 pips+ but stop abruptly.  Don't rule out a breakout at some point.  See the GBPUSD chart.

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$EURUSD

Cross has moved to the .500 fibo and the Resistance at 1.3246 is trying to break the trend line at 1.3200 area. A break here targets the support at 1.3134 looking for a move ultimately to 1.3016.  Failure to break here targets a move back to the top of the fibos again.  A break to the south targets the 1.2901 ( s5) area.  Due to New Years there will probably be much NOT much momentum to drive crosses very far.

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$GBPUSD wedge points down

Cable has built a nice wedge on its wasy to 1.5300.  A break of the wedge targets the 1.5369 
former bottom and then the 1.5328 support.  The 6th support (S6) lies at the 1.5300 area.
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A special Message to all our traders

 

Merry Christmas

 

From the ProAct Traders Team

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$EURUSD consolidation

$EURUSD  consolidation
Not expecting much of a move today since it is Christmas eve and markets should remain in consolidation.  The Cross should stay under the trendline and hover around 1.3100.  If momentum did enter we would look for a move to the 1.3056.  A break north targets the 1.3152.
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$EURUSD Wedge

Cross is trying to break the descending wedge at 1.3073 . Target is the strong support at 1.3016 looking for a move ultimately to the S6 at 1.2887.  Failure to break here targets a move back to the top of the wedge.  A break of the wedge to the north targets the 1.3246 ( s4) area.  Due to Christmas there will probably be much momentum to drive crosses very far.

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$AUDUSD

Cross has tried to do  a double top at 1.0030 without success for the last 2 days. Currently sitting on the .786  and a head and shoulders pattern helps the bearish outlook. We are looking for a move to the 0.9910  area (support).  However, the double top is not off the table.  A break of the 1.0030 negates the bearish outlook.

 

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$AUDUSD keeping its head up

Cross is heading for a double top at 1.0030 with a further target at the R6 @ 1.0149. Currently looks very much like a head and shoulders so the bearish outlook continues to build.  We are looking for a move to the 0.9772  area (support) in the next few days.  However, currently a strong possibility is that it will stall  & continue to move northward.  A break of the 1.0030 negates the bearish outlook.

 

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