TechnoMeter

• EUR/USD trades at lowest level in two years
• USD/JPY testing key Gann resistance
• SPX cycles point to weakness in Q1

Price & Time Analysis: EUR/USD

• EUR/USD fell to its lowest level since August of 2012 on Tuesday
• Our near-term trend bias is lower in EUR/USD while below 1.2360
• The 50% retracement of the all-time low and the all-time high around 1.2135 is the next important pivot for the exchange rate
• The next turn window of importance is seen around the end of the month
• A close above 1.2360 would turn us positive on the euro

EUR/USD Strategy: Like the short side while below 1.2360

Instrument	Support 2	Support 1	Spot	Resistance 1	Resistance 2
EUR/USD	1.2135	1.2165	1.2190	1.2260	1.2360

Price & Time Analysis: USD/JPY

• USD/JPY traded at its highest level in over two weeks on Tuesday before encountering resistance around the 1st square root relationship of the year’s high in the 120.70 area
• Our near-term trend bias is positive while over 119.50
• Traction over 120.70 is needed to prompt a push towards the yearly high
• An important turn window is seen this month
• A close under 119.50 would turn us negative on the exchange rate

USD/JPY Strategy: Like the long side while over 119.50

Instrument	Support 2	Support 1	Spot	Resistance 1	Resistance 2
USD/JPY	119.65	120.25	120.40	120.70	121.85

Focus Chart of the Day: S&P 500



The S&P 500 finally managed to break convincingly above the key resistance at 2075/80 (127% extension of the September/October decline & 6th square root relationship of the October low) on Tuesday. The end of December is historically one of the strongest seasonal periods of the year for the US equity market and it is very difficult seeing the index letting up much before year-end. The first quarter of next year could be a different story, however, as a slew of important cyclical relationships during this time suggest the index will probably surprise and come under a bit of pressure. The first important ‘turn window’ of the year is seen around the 2nd week of January. Happy Holidays!


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