The pair is trading along the uptrend, which has a local growth target at level 1.4635 (“F” trend line). In case that level is passed, the next target level will be set to resistance 1.4719 (2008.12.18 high).

he pair is trading along the uptrend, which has a growth target set to a rather distant level 1.6900. Although that level is far away there are no serious resistances on the way up, so reaching that level is completely real. In order to continue the uptrend the pair needs to get over resistance 1.6590, while the nearest support is found at level 1.6535.

The gold is on the way up, and it is supposed to reach the local target – resistance level 1025 (“K” trend line, see weekly graph). After having a rest at the higher bound of broken “B-B+” daily uptrend, the gold started some consolidation (a figure of trend continuation is being formed).

COT data is yet another piece of the puzzle that warns of a USD low.  EUR, AUD, NZD, CAD, and CHF long positions are at their highest levels in year(s).  Previous instances of one sided positioning led to reversals.

The following is our monthly correlations update for October.  As we have stated time and again, correlations between different currency pairs will inevitably shift over time.

Correlations between currencies are not arbitrarily developed. They are often born from fundamental commonalities between various pairs, shared traits whose importance can wax or wane with time.