Regarding EURUSD, here are my recommendations today:

– Best: Buy EURUSD at 1.2740 (fibo 61.8%) with both short term (1.28) and long term profits (1.335) in mind PROVIDED the Greek parliament approves budget.
– Medium: Short EURUSD on rallies at 1.289/1.2915 with SL 1.2955, target 1.2850, 1.2740.
– Very Risky: Buy EURUSD at 1.2830 SL 1.2790, target 1.2870-1.29.

Analysis: The risk off reaction of the markets to the positive NFP numbers on Friday signals that Romney is a much more desirable president than Obama for the markets. Also the relatively low level of involvment of the market participants suggests a likely volatility boost once the election is over. We therefore expect short term further sell off if Obama is elected and a rally if Romney becomes president. With that said, the market will probably stay quiet till Wednesday. EURUSD remains ambiguous since it did not close below the 200DMA. Despite the sell off of Friday, we expect a mild correction this morning towards 1.2870-1.29. However, further declines seem warranted. The main risk for EURUSD is the Greek parliament vote today. A positive outcome would be mildly bullish, while a negative outcome would be extremely bearish. Therefore any trading today must done with this potentially very dangerous event in mind.

Good luck and be carefull.

http://www.chifbaw.com/en/wp-content/uploads/2012/11/eurusd051112lo.gif

I hope you had great week-end ? Nice sentence and so true 😉 “Wait for some short-term trends to initiate, then counter-trade as trailing stops get triggered in an environment lacking confidence and momentum; that’s how I read this market.”