Forex News – 10th October 2011

EUR

Stunning rally in EUR pairs since Thursday and going well into today’s session.
Germany and France are brewing a new plan to recapitalize European banks by 3rd
November.

It has been reported in the press that a change to The Lisbon treaty is also being
looked into.

Rumored interest of Russian to buying Spanish bonds is also doing its magic on FX markets.
The pair rallied over +160 pips since the beginning of today’s session, marking a high of
$1.3535 at the time of this writing.

Resistance is provided via 21DMA at $1.3547, nearest support at $1.3408.

Commodties

The precious metals such as gold and silver are positioning themselves for a possible rebound. Most
of the gains seen today are provided via bargain hunters.

A firm break above $1,680 may open the way for a deeper correction, opening the door for medium term
investments towards $1,800.

Note the US and Canadian markets are closed due to a national holiday.

Commentary
Whatever goes up, must come down.

The pair has been ranging in a bullish uptrend, wave-like as you may see from
the 4hr chart. Resistance is seen at $1.3578. Even if the pair close a bit above
the resistance but it is still within the corridor (shown in black lines) may
lead to a brief reversal.

The MACD Histogram will diverge, indicating a forthcoming decline.

I am limiting the weakness to $1.3458 as support level in the region may contain
further weakness.

A sustained break outside the corridor defers this view.

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Although the data has been collected from reliable sources Bloombex does not vouch its accuracy
or precision. The quotes mentioned are for indication only, the implied conditions will only be the concluded
conditions when executing the trade.
The review is presented for instructive purposes in condition it will not be the key factor for trading.
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