Forex News 26th September 2011


EUR is being whipped also by its own bulls by as the comments where noted from China:

“China Investment Corp needs to ensure its own interests first and
can’t save Europe.”

“As a company, our task is assigned by the government to maintain a certain
profitability so we can’t simply go to Europe and save someone.
We have to protect ourselves.”

EURUSD whipped down to a low of $1.3630 from a high of $1.3576 before recovering at the
time of this writing as a bullish hammer forms on hourly charts.

The UK Telegraph says that a 2 trillion euro plan to prevent contagion was under discussion.
Should such a plan be revealed the euro will gain dramatically against the majors.

Resistance is marked at $1.3585, support at $1.3362.

There is a growing speculation The Bank of Japan (BoJ) will conduct Yen-selling
operation towards the end of this month.

The BoJ may attempt to reach Y79.00 as their target for a FX intervention.

Bloombex clients will be updated on the matter via emails later on today.
Re-assuring comments from ECB Nowotny are helping to dampen the risk-aversion
in the market at the mean time.

USD/JPY is up +22 pips at the time of this writing, managing to erode earlier losses.

High-risk for a red flag.

After the sharp selling in EUR/USD the market took a pause before resuming its trend.

We can see it from the chart as in the previous session the support at $1.3420 was broken.

The bearish flag determines that a drop of +300 pips should be expected. I decided to use a more
conservative target at $1.3270.

Please note that the current candlestick that will close soon must close below
$1.3420 to confirm the resistance is solid.

Next resistance is seen at 21MA, currently at $1.3523 which is expected to cap any gains.

Only a break above $1.3554 defers the bearish view, further gains may then be seen towards

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