Forex News – 24th October 2011


A strong rally in EUR may soon fade as we approach crucial EU summit this Wednesday.
To recap, EUR/USD has rallied in the past 2 weeks over +500 pips as the market’s hopes
rose for a nearby solution for the European debt crisis.

A hanging man on a weekly chart halted the buyers in the pair, allowing a faint
correction to the early gains.

EUR/USD currently trading at $1.3837. Support tipped at $1.3823, resistance at $1.4055.


US Earnings is the main attraction of this week as well as the Advance GDP q/q this

Some of the main companies are:

Date Company Estimate

24 Oct Caterpillar $1.57
24 Oct Kimberly-Clark $1.26
24 Oct Texas Instruments $0.57
25 Oct $0.24
25 Oct 3M $1.61
26 Oct ConocoPhillips $2.19
27 Oct Coca-Cola Enterprises $0.69
27 Oct Dow Chemical $0.63
27 Oct Exxon Mobil $2.13
27 Oct Procter & Gamble $1.03
27 Oct Time Warner Cable $1.14
28 Oct Chevron $3.45

USD/JPY is also becoming attractive as Japan threat a FX intervention as the FX rate does
not reflect Japan’s fundamentals. An interest decision is due late Thursday/early Friday
where further measures may be taken to weaken JPY.

The odds for an intervention this week are not high at the time of this writing but cannot
be ruled out.


2 Patterns In Play.

I’ve seen many views suggesting further sales are in store for EUR/USD, nevertheless
I would pay closer attention to the 4hr chart.

Resistance at $1.3911 prevented further gains, main support is seen at $1.3654.
A break under may confirm a double-top reversal pattern, which indicates further
weakness, possibly towards $1.3400.

The 400MA at $1.3953 is the resistance, which if breached confirms a variation of
reversed H&S.

In such a scenario, gains may continue towards $1.4200 if not higher.

Any leaks about Wednesday’s summit are likely to be the key driver for any move.

The publication cannot be distributed, copied and/or make any other usage without Bloombex Ltd.
Consent and written approval.
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.
The contents of this publication should not be construed as an express or implied promise, guarantee
Or implication by Bloombex.

Share This Post

Related Articles

© 2018 Global Forex All rights reserved. Site Admin · Entries RSS · Comments RSS
Powered by WordPress · Designed by Theme Junkie