<span style="text-decoration: underline;"><strong>A USD BLOODBATH:</strong></span>

Looking at the markets it looks like the USD index could be at the start of a huge breakdown. The next trend line (240M CHART) support has given way and horizontal support lies at around 78.50. After this it could get ugly.

In the FX market the tight ranges have been blasted apart and what wrote about yesterday regarding the behaviour of the USD/JPY is <span style="text-decoration: underline;"><strong>NOW</strong></span> in play. This currency to break the FX levels wide apart. The big momentum moves have taken place, pulling stops etc, but there has been no pullback.....we are consolidating. This would normally mean we will move again after a period of consolidation.

Looking at the USD majors here are were I see todays moves, extending to maybe even further: -

EUR/USD: 1.4000
GBP/USD: 1.7000
USD/CHF: 0.8700
USD/CAD: 1.0850
AUD/USD: 0.9500
NZD/USD: 0.8850

No one is finding value in the USD at the moment...very, very shallow pullbacks if any. I think if the momentum starts again, these targets are possible.