Week 1 New Year 2009

• The 2008 Year End Euro weakness was tested early this week. Geopolitical and fundamental conditions have tested the USD against most majors. Considerable weakness against the Pound.
• Though there was volitility, overall sentiment was a weak USD.
• The question this week was whether we'd get clues as to where the Dollar would begin the brand new trading year.
• This was Non-Farm Payroll week. The expectations were low, if not disastorous from last months job figures. Slightly better than expected numbers slowed down the Dollar weakness from the past 3 days.
• It is significant to see how our AO kept us short, despite a rather huge move upwards with Euro even on the 4HR charts. Thus our bias will remain short until a significant failure against next key support levels in the low 1.3000 handle. ainly th downward acceleration from last month has slowed. If/when we approach k
• A slow lazy trading week, profitable, consistant though and on track to start the year. Short levels in the low 1.300's handle, we have to keep a close eye on momentum. Further weakness in this momentum and we'll scale our Euro shorts and play it safe.Expectations before next ECB meeting should keep downward pressure on Euro.