Happy Belated New Year

Hello traders. I'm a little late ringing in the New Year due to an issue I highlighted in the previous post. Who cares?! Time for the weekly update. Starting with a quick look at risk sentiment. SPX 500 made a charge for the end of October high of 1292.9, barely closing above it at 1293.6. In the process, creating a hanging man pin, as well as an inside day fake out. Suggests that we could see a reversal early in the week.

Especially since we had late breaking news from last week - Standard and Poors downgrading 9 countries including France late Friday trading. Not sure if the aftershocks have been fully absorbed by capital markets as yet. The next couple of days will tell.

EUR/USD made another low, but looks to still be consolidating in an expanding triangle pattern. If the current low holds, may move to the upper bound range test before proceeding lower.

AUD/USD: Two scenarios. Stronger data this week may push Aussie for an attempt at the 1.05 area and test the upper bound of what could be a larger 5 wave symmetrical triangle.

Weaker data may confirm 5 wave ascending triangle as a wave 2 of C suggesting a larger zig zag consolidation with further losses ahead.

Major event risk Monday and Tuesday. Watching for short setups @ 1.03789 and 1.048 areas. Not looking to trade the long side of this one.