As expected, risk based and rallied (the next day after the last update). It is my belief that risk will rally quite a bit further, possibly into February.
Below is a four hourly chart of USD against the Swiss Franc (CHF). It appears that the structure is very heavy up here, and is setting up for substantial, multi-week weakness.
Weakness in the USD is likely to coincide with a rally in risk and related assets. Below is a chart of the EuroSTOXX 50, which I believe is about to break out of its 12 week consolidation. It is of course possible that we break to the downside, however I find that difficult to reconcile with a weak US dollar. Therefore, I expect the market to break higher.
It appears that AUD has been consolidation most of 2011. I expect quite a sharp spike higher, followed by an abrupt reversal lower in the next 10 weeks.
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