Forex News – 11th October 2011

EUR

Slovakia is due to vote today on leveraging the EFSF. A majority of 17 countries
is required to allow such a move. Slovakia’s Finance minister opposes the idea as
he believes the EU is protecting Greece to shelter the profits of French and German
Banks.

Despite yesterday’s strong gains (+280 pips) Slovakia turning voting against the
maneuver will lead to a major sell-off in EUR/USD, Which suits well with the technical
side as a (partial) correction is due to take place at some point.

I would keep a close eye on all commodities and currencies that contain USD and JPY.

Support seen at $1.3615, resistance at $1.3683.

GBP

Although today’s focus is mainly on the vote in Slovakia, GBP/USD will be dragged higher
or lower, depending on the outcome of today’s vote.

Main focus is on the manufacturing production at 08:30am GMT.

EUR/GBP is my favorable as a decline below 0.8700 may see a dip towards 0.8680 for
the short term.

Commentary

Y123.00 back into play before year ends?

The cross has formed a double-bottom, explaining the sharp gains from October’s lows.
A push above 200Ma is required to reconfirm the double-bottom reversal pattern,
which may lead the way for a deeper correction towards Y123.33.

200MA is currently seen at Y121.10.

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