What a week!!

Good Monday morning folks!! I would like to take this opportunity to congratulate Kimi (my favorite driver) for his first win since his return to F1 just this season!

This week.... will be one heck of a week with the U.S. election tomorrow, the Chinese leadership transition and the Barclays Singapore Open taking place from Thursday!!
So let's focus on the U.S. first.... by the way, how many of you are guilty of not knowing the meaning of "fiscal cliff"? Here's a little help... it is a popular shorthand term to describe the conundrum that the U.S. government will face at the end of 2012, when the terms of the Budget Control Act of 2011 are scheduled to go into effect. You can read more on the terms here at
http://bonds.about.com/od/Issues-in-the-News/a/What-Is-The-Fiscal-Cliff.htm

Last Friday was a disappointment as I was expecting a bounce before the sell-off but it did not materialize after it fell through the support. Am glad I had a tight stop placed.
For today, I have to warn that market can be choppy but pressure is on the E$ at this stage basing on the weak close last Friday and for the week. However, there is a risk of an intial mild short squeeze before it resumes its slide.

Most of the sell stop loss orders had been flushed last Friday and we are nearing the previous low of 1.28034. I have no updates on the latest orders but from last, noteworthy limit orders can be found at 1.2780 and 1.2800/05.

CFTC speculator accounts revealed that E$ net short has increased to -58,207 vs -55,219 and net short JPY jumped to -37,020vs -18,196.

Technically, intraday indicator is in the o/s zone and intraday momentum is starting to turn higher. Initial support at 1.2800/05 should hold for now and a rebound to 1.2870/90 is expected during the Asian to early European session. There is a small possibility of market squeezing up to 1.2960/70 but will be keen to fade into this rally for 1.2800 to be retested. General trend for the week basing on the available technical signals is down but remember that this week can be more fundamentally driven. So be prepared for a choppy market and advise all to have stops in place and stay very nimble.

All the best and have a great week ahead!!

E$ Weekly chart - Mean reversion to 21WMA?