Your Friend LLC

On behalf of Shawn Powell, Jared Boyd and Jason Galano let me wish you all a joyous, healthy New Year.  May you also enjoy good fortune in your trading in 2011. 

Peace on earth. Good will toward man,

Greg Michalowski

The USDCHF fell through the bottom trendline support at 0.9320 and fell to a low of 0.9300.  The move back above the 0.9320 and the holding of the 0.9300 level now gives dip buyers a level to lean against.  Look for profit taking buyers on dips toward the 0.9320 level. The upside target becomes the 94.05 level where trendline resistance comes in.  Volatility to prevail for the next hour.

The resistance above is at 81.25-28 (see chart below).  The next key support comes in at 80.70 (see chart above).  Anything can happen as end of year volatility rules the day.

The 1.3423 levle is the next target (see chart). Could see resistance against the level. A move above targets 1.3446 which was the low on November 26th.

The midpoint of the December high to low range comes in at 1.5626. Can the market find profit takers or is the end of year squaring going to control the market?>

We continue to retain our bearish outlook on USDJPY and look for it to decline further towards its 2010 low at 80.23. This is coming on the back of its loss of upside momentum at the 84.50 level. A loss of the 80.23 level will call for more declines towards

Trading has all but dried-up as all but the die-hard investors leave their desks for New Year celebrations. The year has been characterized by two extremes: Fears that the European sovereign debt crisis would drag down the global economy in to a second-wave of recession were soothed as the U.S.

The dollar continues to fall as the year moves toward the close. The EURUSD is extending above the 200 day MA and tests 1.3400. The USDJPY and USDCHF continue the move to the downside. GBPUSD surged higher in the last hour as London looks to ring in their New Year.

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A call to unity from German Chancellor Angela Merkel in a New Year speech to her nation is helping drive the single European currency higher as 2010 draws to a close. Still, the dollar will end the year higher versus the euro having taken advantage of ongoing sovereign debt crises