Week of June 6-11, 2010

EURUSD’s broad outlook continues to favor further downside extension with 1.1881 as the next objective. ONLY a weekly open and close above 1.3173 will complete the fall from the November 2009 high of 1.5143 while last weeks 1.1955 low holds. Otherwise, look for further downside extension to unfold with a sustained break of 1.1881 targeting the November 17, 2005 low of 1.1642 followed by 1.1435 and 1.1210 into the days and weeks ahead . As to the medium term outlook. the fall from the January 13, 2010 high of 1.4579 remains active as ONLY daily open and close above 1.2957 will complete this fall while last week’s 1.955 low holds. Short term, EURUSD’s fall from the June 3, 2010 high of 1.2326 remains active as ONLY a 1 hour open and close above 1.2097 will complete this fall while the June 4, 2010 low of 1.1955 holds. A  hourly open and close above 1.2097 will favor further corrective rise within a 1.2097-1.2184 consolidation zone before another attempt to the downside. However, once prices have closed within the above mentioned zone, a sustained break of this zone will see further price extension in the direction of the break.

DJIA-The Dow Jones Industrial Average broad outlook has witnessed the fall from the 2007 high of 14,192 complete at the 2009 low of 6,466, as a monthly open and close above 9,417 in September 2009 completed the fall at 6,466 with prices subsequently moving higher within our previously sited 9417-11,241 consolidation zone. In that prices have now moved within the above mentioned consolidation zone, a sustained break of this zone will favor further price extension in the direction of the break. As to the corrective rise from the March 2009 low of 6,466, this rise remains active as ONLY a monthly open and close below 9,426 will complete this rise while the April 2010 high of 11,255 caps. Once prices have closed below 9,426 while 11,255 caps, risk will favor further downside extension within a 8,295-9,425 consolidation zone as  a monthly open and close outside this zone will see further price extension in the direction of the break. Regarding the short term outlook, the fall from the April 26, 2010 high of 11,255 continues to unfold as ONLY a daily open and close above 10.400 will compete this fall while the May 25, 2010 low of 9,722 holds.

XAUUSD-Spot Gold broad outlook remains bid as the rise from the October 2008 low of 680 continues to unfold as ONLY a monthly open and close below 1,032 will complete this rise while the May 2010 high of 1,249 holds. As to the nearterm outlook, the rise from the February 5, 2010 low of 1,044 remains active as ONLY a daily open and close below 1,170 will complete this rise while the May 2005 high of 1,249 caps. Look for prices to attempt to retest the recent 1,249 high as a failure to sustain above this level suggest a correction towards 1,170 will soon follow.

We will have more updates later as needed and will also provide detailed forecast for our members as per request.