Market Update - 28 Feb 06

USDX
Down to 89.90/70 to 88.7. Below that down to 88.05 to 87.22
Above 90.40/65 continuation above 91 and above 92.63

JPY
Now it is right on target (I expected 115.5)
Down to 113/112.90
Above 117.80 could be first good indication of a continuation above 121.38 top, if it is to continue down then this ongoing correction would most probably stay below 116.80/90 my preferred view is still down but changed in the part that this whole action from the 121.38 top is not clearly a reversal pattern so we could expect to see a continuation up above the 121.38 top from some of the lower levels.

EUR
above 1.1950 to 1.2 to 1.2025 to continue down
below 1.1890 to 1.1825 to continue down to 1.15/14

CAD
down

GBP
Above 0.7436 up to 1.7655 to 1.7700/7750
to continue down to 1.69/68 to 1.66

AUD
Above 0.7436 up to 0.7480/85 to continue down.
Below 0.7385 could indicate down to 0.67 - Below 0.7350 is good confirmation
So could be a low risk short from either current levels or little above @ 0.7480, preferably second. Also breaking below 0.7410 will be a first sign of weakness.

Bear: Long to short ratios could be used as a good contrary indicator, since if you see the Open Trades summary on Oanda, there are never more than 15% of all open trades in profit.
In fact since we spoke yesterday, Long to Short on CAD move to even More Net long, and the profitable positions fell from just below 10% to now around 5%