Financial Programming Services: 110212

This week I have used my new channel indicator to show the 5 and 3 day channels for each pair.

AUDJPY continues its sideways move. I normally don't like selling AUD due to the negative swap, but re-enabled it recently to gain advantage from the return to sideways move, and possible downturn.

AUDUSD has now finally moved below my nDay centre point, and Watcher has initiated some buy orders. This should accumulate some nice swap, as well as giving us the benefit from the sideways move which should come as this pair moves away from its lifetime highs. See the reversal which occurred in the latter half of Friday. This shows resistance to the downtrend, with support at around 99.6. If this is broken, I expect the next support level to be at around 99.5, also a psychological level.

Weakness in the Swiss Franc (and GBP strength) has been apparent for the last 2 weeks, and Watcher sell trades are accumulating. Comparison between 5 and 3 day channels shows the uptrend may be flattening ready for a reversal.

EURGBP shows possible weakening of GBP, though not as much as could be expected following the recent BOE decision to keep rates unchanged for the next month. Sterling strength, given conflicting fundamentals and the BOE decision, remains enigmatic.

EURJPY shows some signs of easing, possible sideways move starting.

EURUSD has been moving sideways for a while, channel indicators show either increasing volatility or the start of a downwards move. Late Friday trend as shown by the Smoothed RSI Inverse Fisher Transform indicator (must think of a new name for that one!) is, however, interesting.

GBPCHF remains the pair of interest, it being difficult (for me) to understand. Good fundamentals for the Franc, overall bad fundamentals for sterling, the BOE interest rate decision, all just don't add up. The 3 day channel looks like it is confirming the 5 day channel continued upward trend.