Week of February 14, 2010

EURUSD has reached our initial 1.3748 target sited in our January 30, 2010 update with prices continuing to move lower towards our next objective 1.3418.  As to the fall from the January 13, 2010 high of 1,4579, this wave remains active as ONLY a daily open and close above 1.3931 will complete the fall while last weeks low of 1.3531 holds. A daily open and close above 1.3931 will see prices contune to move higher within a 1.3931- 1.4179 consolidation zone before another attempt to the downside.

GBPUSD closed last week higher as the nearterm outlook favors further upside extension but the broad outlook risk remains for prices to continue to move lower with 1.5407 as the next objective while  1.5886 caps.  However,  a 2 hour open and close above 1.5738 will see further price extension to the upside towards 1.5886 before another attempt to the downside. As to the fall from  the January 19, 2010 high of 1.6457, this fall remains active as ONLY a daily open and close above 1.5886 will complete this fall while the  February 8, 2010 low of 1.5522 holds, as prices will then continue to move higher within a 1.5886-1.6184 consolidation zone before another attempt to the downside.

AUDUSD also closed last week higher with risk for further upside extension in the days ahead with 0.8953-0.9042 as the next objectives while  0.8788 holds.  ONLY a 4 hour open and close below 0.8788 will favor further downside risk with 0.8708 followed by 0.8577 as the next objectives.

Spot Gold broad outlook remains bid as ONLY a weekly open and close below 1018 will favor further downside extension within a 889.30-1018.42 consolidation zone before another attempt to the upside. Once prices have moved within the above sited consolidation zone, a sustained break of this zone will see further price extension in the direction of the break.  As to the current corrective fall from the December 3, 2009 high of 1,226.38, this wave remains active as ONLY a daily open and close above 1,113.79 will complete this fall while the February 5, 2010 low of 1,046.20 holds.

DJIA broad outlook remains bearsih as the rise from the March 2009 low of 6,466.00 is  corrective of the 14,192-6,466 fall, as ONLY a weekly open and close above 11.241.0 will eliminate the braod bearish outlook.  As to the corrective rise from March 2009 low of 6466. prices have moved within the previously sited 9417-11,241 consolidation zone as a sustained break of this zone will see further price extension in the direction of the break. The corrective rise from 6,466 remains active as ONLY a weekly open and close below 9,096 will complete this rise while the January 2010 high of  10,722 holds. Once below 9096, prices will then continue to move lower within a 8,091-9.096 consolidation zone before another attempt to the upside. As always the case, once prices have moved within a sited consolidation zone, a sustained break of this zone will see further price extension in the direction of the break.

SP500 Index remains in a corrective rise of the 1,575-665 fall as prices have currently moved within the previously sited 1013-1228 consolidation zone. The broad outlook remains bearish as a sustained break of the 1013-1228 zone will see further price extension in the direction of the break.   However, the corrective rise from 665 remains active as ONLY a weekly open and close below 965 will complete this rise while the January 2010 high of 1,151.45 holds, as prices will then continue to move lower within a 851-965 consolidation zone before another attempt to the upside.