EUR/USD -154

one should almost expect sudden moves on the currency market in this time of the year. In this pair it looks like the good buying opportunity. There is no point to explain every move on the market, but general picture, for a right now, is showing that this pair have room to "grow".
Last week candle showed market unwillingness to go lower. This week, so far, added more undecidedness to it, and current drop gives a great chance for buying. It is just what we would like for christmass :)
Bellow the current levels lies 23.6 fib support at 1.2840 (1.1881-1.6026), and it should hold, in case that things go "south". Core of the trade is based on the belief that market is currently not willing to sell more euro, but is waiting for the next news or a reason to buy more euro, what we believe that is coming. When markets are wishing for something they usually get it, and now market is waiting, wanting, wishing, for a good news.

Happy New year to everybody from OctagonFX

CHF/JPY +138

by know everybody knows that JPY is just getting stronger and stronger. When we have "flight to safety" in currency world, that means that people are selling AUD, CAD, NZD, GBP, and EUR, and buying JPY, USD, and CHF. In this case we have battle of the two "safety nets". Both central banks are saying that their currency is too strong and that will have an effect on their economy. They might be right, but that will not stop traders from buying their currency. Both of the central banks tried and experienced the pain of intervention on the currency market that did not lead them anywhere. To make this short; JPY is overboght on so many levels, and we have some what of Risk-on on the market. Technical aspect will help our trade, but needles to say that we have to keep an eye on market developments, cause things get get ugly "in a jiffy" :)

CAD/JPY +115

new lows are reached on this pair 72.13, and some would say "why would you try to catch falling knife"? Well, there is several reasons for it. Of course that we know that market is selling off risk (CAD), and buying safety (JPY). On top of everything oil is reaching new lows,S&P & Dow are also reaching new lows. This trade is based on premise that people are going to stop and think very carefully about selling more than this level on many markets, even if the news that is coming out is not all that great. That would in our opinion open door for much lower levels, and our trade would be liquidated in a "jiffy":)
If markets stop and think about it before make the next move, our trade makes perfect sense. It would make a great profit if someting good happens on the market. After all, even the selling has it's stoping point.
Slow Stochastic looks tired from pointing lower :)
Stops are placed at 71.60 and target is 73.40

AUD/USD +260

USD made a huge run in recent weeks, from low seventies to high seventies, where it is currently. At the same time AUD did it in opposite direction, as the markets were selling off. Pair is on the support line that seems very strong, and we think that would take a lot of global selling in order to go bellow. As many are predicting high volatility of the market we think that this is the time to buy, and look for the upswing in global markets where buying will take place, before the end of the year. Reason for fear and worry is always there, but so is the hope and desire to make money. Technically we think that this is the good spot for the purchase of the currency leader when market is on the upswing, and of course we expect that news from China and asian markets surprise on the positive. Target can easily moved to a much higher point than 1.000, but we will play it a bit conservative at this moment. We will cut the trade bellow 0.9600

EUR/CHF +433

On previous entry we got stopped out, and that is negative. On a positive side is that we have even better entry point, because we still believe that exchange rate between EUR and CHF is far too low to survive at current environment. Imagine how it feels to Swisss businesses that just year ago had exchange rate as high as 1.42. We believe that market is going to bounce back.
Stops @ 1.1720, and profit target 1.2380.

EUR/CHF (-15)

with the euro is getting it from all sides, particularly from it's neighbor CHF, we think that there is a limit how much currency can slide in certain period of time. Needles to say that key is in resolution of many problems is in Greece. In case of further detoriation we think that selloff will continue but at much slower pace, and in case of any impovements we going to see knee jerk reaction in this pair.
Stops are placed at 1.1770, and targets are set at 1.2380
Stop adjusted to 1.1940, just bellow entry. Caution ahead of Greek confidence vote.

EUR/GBP (-114)

with the recent Euro advances coming to a stop, it is time to take a short with the GBP, and the main reason for that is expectations of the BOE to raise rates before ECB. Recent developments in Euro zone area do not go in favor of Euro ( Portuguese downgrade, after Spain, and Ireland), and inflation in England is much higher than some of it's members would like it. From technical perspective the pair is just on multi-week resistance trendline at 0.08790. Close above this level on the weekly chart could open the door to further advancements, but with fundamental factors trend-line resistance should hold, and more downward pressure should be come in April. Stops are placed at 0.8980 and above, and target should be placed at 0.8615, and bellow.

USD/CAD -80

recent moves in oil added strength to CAD what moved the pair to about 0.9820. Oil move was dramatic (from high $80's to just above $100) and this pair did not gain as much, and the reason for that is that market participants that Canadian dollar is just getting too strong. Members of Royal Bank of Canada are getting very concerned about currency strength, because it might hurt recovery that is taking place in Canada. With strong currency BOC has no need to raise interest rate, and we think that market is realizing that. In the case of more turmoil USD is still the safest bet, so we will go long at 0.9820. Divergence is clear on daily chart and we should target 50 simple moving average as the first target.
Market had many excuses to push this pair lower, but decided to pass on it. In case of stabilization in Libya, we expect strong move up, and sharp drop (profit taking) in oil, as well as in CAD.