Happy Friday, Everyone!

With the current “Counter-Trend” Rallies of Price Appreciation taking place over most of our Units… a check with Her Majesty The Queen…GBP/USD… is fitting.

We have not had a visit with Her in a while… so we bring along Her cousin, GBP/JPY as well !

These two Units will give us some “relative strength” of the Dollar and Yen lately… since we sure have been “weaving in and out of” Correlative Activity this week.

On the larger Macro-Views.. the Dailies are certainly nothing new with their Uni-Directional Downtrends.

It is the Hourly Views that prove to be interesting… as the “Counter-Trend” Action is most prevalent and like today’s Bear Market Rally on the Dow… we can simply call these big “Dead Cat Bounces” in my personal view.

As we always say with large Directionality… large Retracements and Corrections are essential for the “health and integrity” of the Trends.

Here are the Captures with  Commentary, so as always, give them a Click.

Post-Time is 2:30 GMT.

As always, I will return during the European Session with an Update as we move forward!

Welcome to out first trading week of 2009!

Last Friday, our Euro friend was appreciating nicely with its’ “cousin”, Gold.

We noticed a strong relationship here, and concluded our Price similarities were tight…but not as deeply

correlated  as other Currency/Commodity groupings.

Even though the Euro itself is strongly backed by Gold…how about a look at the tightest Gold correlation we have…the Aussie!

So…let’s take a look at the Euro and the Aussie for a couple of days…we may see some of those general macro-similarities that we use for overall Market exposure protection.

First up to the plate is the Euro…so let’s see where we may progressing.

We are still largely “Rangebound” on a Daily Macro view ( mind you…a rather large Range…), although a visit to our Hourly again shows nice follow-through with the Sydney Open to begin our week.

(click once for captures)

Our points of directionality are rather clear on the Daily Time Cycle…so let’s drill down to the Hourly and see if we have additional clarity.

As illustrated, we certainly may see a re-test of the 1.40 area…although we do appear to be carrying some “weight” here with high probabilities to the downside.