Waiting In Ambush.

This is the most difficult part. To wait.
Everything is in place. We know what is coming and we are waiting.
Patience, patience.
It will be rewarded within the next five working days.

Rumors flying thick and fast;
Euro Zone countries looking for life after Euro;
http://www.dowjones.com/products/djfxtrader/articles/BanksPrepforLifeAfterEuro.asp

I have already written about the strong correlation between AUD and SPX. Some more on this subject.

Apart from the fact the AUD is close to a short term cycle high, the technical team of FXCM has this to say;

They are looking at the following picture;

I also wanted to compare AUD vs EURO. For most part of 2011, both these currencies have moved in tandem. However for the last week or so, AUD has raced up. I do not think this divergence will continue for long.

Either Euro has to go up and catch up with AUD or AUD has to come down near Euro. I think the later is more possible.

After all being said and done, this window of short opportunity is only up-to 15th December and I would possibly close my short trade before that. We will take one trade at a time and not look too much deep in the future.