Line Changes:
>Extended Active green lines. Steepened upper one slightly
> Extended dark green trend line. Same angle.

Position Changes:
None. Still short.

Order Changes:
None. Ready to move stop losses down to stay lines.

The US Dollar is likely to rise against most major currencies in 2010 according to a "smiling" model of the greenback’s performance at the beginning, middle and conclusion of major recessions in the United States.

The ‘Dollar Smile’ Hypothesis

Intuitively, one would suppose that the US Dollar should decline if the United States falls into a deep recession as the Federal Reserve cuts interest rates to stimulate economic growth, making the greenback unattractive...

The Euro advanced for the second day to reach a high of 1.3957 during the overnight trade, and the single-currency many continue to retrace the sharp decline from the previous week as the economic docket reinforces an enhanced outlook for future growth.

Talking Points
• Japanese Yen: USDJPY Continues to Hold Below 20-Day SMA (90.98)
• Pound: Construction Weakens at Slowest Pace in Nearly Two-Years
• Euro: Producer Prices Unexpectedly Increase in December...

Line Changes:
>Changed angle upward and extended lower active green stay line.
>Extended dark green trend line, less steep.

Position Changes:
>None. Still short.

Order Changes:
>None, but ready to decrement stoplosses if needed

Comments:
>Raising angle of lower green stay line sets the two on a path to converge – at which point they will be consolidated if still active

US Dollar Forecast to Appreciate versus Euro Ahead of NFPs Data

Read more: DailyFX - Forex Weekly Trading Forecast - 02.01.10 http://www.dailyfx.com/forex/fundame...#ixzz0eILyITWI
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British Pound: Outlook Hinges Upon BOE’s Decision on Rates, QE
Swiss Franc...