Technical Analysis EURUSD Spot Daily Chart Another bullish close, looking at the wave structure, other key

y s&r levels, & the fundamentals, we will top out around 140, having now cleanly broken the key 136.90 level to the upside. Thereafter, I am still bearish and favour a year end move towards the 130 handle.

USDCHF Short term view is bullish Looking for a break up to the 95 handle, and then a test of 9775 I like the idea of an entry around the 86 handle -

AUSUD Short term I can see us breaking up to 1.03 / 1.0350 By year end I am still bearish and would be looking at levels around the 97 area -

USDJPY My fav set-up at the moment Wave structure is looking ideal for a leg down to new lows around the 75 area, which may well result in intervention form the BoJ, subsequently getting us back up to the 80 handle. At the moment we are trapped in a sideways range, hopefully moving lower which would be typical of a 4th wave. The only caveat here is the rumours today of a Peg on the Yen. Lets see!

USD Index After a strong rally off the back of risk aversion and a flight to liquidity (rather than a flight to quality as I would term it anyway!), we have seen some sharp declines given the recent return to risk assets. Short term bearish, by year end still marginally bullish. A market I am not trading for now.

Emini S&P 500 Future 12/11 I remain bullish to 1230 in the very near term to see through the current wave pattern, however I see this as a false break / bull trap and favour the recent range of 1120 1220 as the range to play through Q4 -

Dow My view here is unsurprisingly similar to the E-mini S&P 500 as noted above. False break and a play of the August / SEPTEMBER RANGE UNTIL YEAR END -

DAX Again, similar to the Dow & Emini S&P I feel we will breach the 6000 level, but ultimately wonder back into to range trading between 5000 & 6000 for the remainder of Q4

ESTOXX 50 Again, feeling quite repetitive now I see us at the top end of the range, and believe we will move back lower ranging between 2350 and 2000 through the remainder of Q4

VIX Charts below just for info Monthly & Daily Chart Note we have managed to stay under the 2009 & 2010 levels and continue to do so having moved sharply lower towards the 30 level. Thus confirming a marginally positive sentiment driven environment, for now! Mid range really from those levels to the lows around the low teens seen earlier this year. The daily chart shows the current range from late July through the time of writing. Roughly 50 30 -

WTI Crude Future 12/11 Similar to stocks I feel we have a little upside left, however ultimately we will range between the year lows around 75 USD per barrel, & the 90 area -

Gold Having experienced a pretty brutal retrace from the highs near $2,000 per troy ounce, price levels have stabilized around the 1,600 1,700 area As things stand the range is tightening depicted by the pennant in play as seen on the chart below. My view is we will break to the downside ultimately testing the 1,530 area again, which I favour as an excellent long opportunity longer term, targeting $2,000 in 2012

Bund Mainly as a result from the recent return to risk assets, the German Government 10yr has experienced some downside, trading at its lowest levels in over 6 weeks. Long term I favour the upside though, with a return to the highs by the year end. Daily & Monthly chart below -

US 10YR T-Note The US Government Debt is an interesting one with Operation Twist in play at the moment. Suffering slightly off the back of the recent return to risk, having seen some real upside after the FOMC in September / Operation Twist announcement. I am compiling a more detailed report specific to this and will upload soon.

This is simply a brief look at the markets, and some technical observations of mines from analysing the charts. I am also producing market specific / asset class specific reports with more detailed analysis of the technical side & the fundamental side, detailing key levels for entry / exit etc. This will be available within the next week. Happy Trading Paul Gallacher