Market Forecast for 10-05-12

EURAUD: The Euro-Aussie pair hit our first profit target dead on, had a pullback, and ran up nicely before it broke the 60-minute trend-line at 1.2695. Another two winners for you!

ACTION: High risk traders consider selling the next 60 and 240-minute rally (subject to overbought indicators and then a 60-minute  trend-line break to the downside or your breakout sell stop with a bit of a fudge factor to give it room to gather some momentum lower before you are tagged into a short position. Potential pullback to 1.2606.

Conversely, if the 1.2720 exchange rate is broken to the upside, then we will be looking for 1.3220 area (see EURAUD 4-hour and  hourly charts below).

euraud euro aussie 240 minute chart with analysis

euraud 60 minute chart

EURUSD: (See 10/01 report) The Euro took out 1.2960 1st buy setup condition, then pulled back on the 60-240 minute charts (second buy condition) as suggested it might, and provided the perfect long setup that we envisioned was likely to occur. Now we are into 240-minute resistance level. There are no new lower-risk pattern trade recommendations, but the 60-minute trends are still all up, even though the 240 and daily trends are are mix. Thus, we will get system buys and sells in here, so it may be a tad choppy for retail FX traders. Got for short-term profits today using lower time frame charts (see daily and 240-minute charts below).

euro daily chart

euro 240 minute chart

S&P500: The index continued up from its 60-minute pattern break out buy signal as mentioned in our 10/01/12 report. The 240 also went long, with the daily system still long. The 60-minute trends are still all long, but the daily and 240 are mixed like those of the Euro. We are getting some indicator buys now, but NOT a new 60-minute system buy, 5:24 AM EST.

Caution on to long traders if 1454.10 is broken to the downside (see daily chart below with studies).

s&p500 daily chart

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