CITI - FX SUMMARY

Dow Industrials: Head and shoulders neckline breached. The pattern targets 7,640.
S&P 500: Head and shoulders neckline breached. Near term support is at 878 and the pattern targets 821.
NASDAQ: 55 day moving average breached. The Index should test the 200 day moving average at sub 1,300.
VIX Index: Bullish daily reversal posted yesterday. Watch the near term resistance at 31.50, a close above that would be bullish.
DAX Index: Head and shoulders neckline breached. Bearish outside day was posted. The pattern targets 4,130.
Fixed Income – Lower yields expected
U.S. 10Y Yields: Taking out the 55 day moving average support and should test 3.15% and then 3.08%
T-Bond (USc1): Bullish key day up on the price chart and rally through the 55 day moving average. Further gains up to 124 are expected.
Commodities– Crude is weaker still
Crude: Below the 55 day moving average. Lower levels expected
Foreign Exchange – The USD and the JPY should benefit from the above developments
GBPJPY: Should test the 150 and then the 200 day moving average at sub 146.
AUDJPY: Breached the 55 day moving average and is in danger of falling to sub 68.
NZDJPY: Breaching the 55 day moving average today and is likely to test the 200 dma at sub 55.
USDJPY: Watching the 94 area closely.
G10USD Index: Trend support and 55 dma under threat. A down move is USD strength