Market Notes, Mar 22, 2010

Doing my Homework

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I observed correlations with Gold and Euro a few times through today's session, which indicates US dollar driven order flows.
Range and volatility has expanded for 2nd day in a row, and this is yet another sign of a potential short term topping action.
For tomorrow, I am biased to the downside, but am prepared with a plan for the upside, hence the wider range estimate. The attached chart above highlights 1149 FOMC breakout level, but Probably the key here is 1156 line in the sand. If 1156 support holds, that opens the door for a challenge of 1169-70. If 1156 support fails, then the 1149 buyers will be prone to give up on their position, ie. become sellers.

I will look to sell Euro 6EM10 resistance 1.359, 1.3625 on divergence or candle confirmation at those areas. If Euro acts strong still after rising to those levels, I will consider looking to enter on pullbacks.