Forex News 28th September 2011

EUR

The EFSF vote is Finland is due to take place today (14:00 local time) and tomorrow
in Germany. As a reminder, EUR has been gaining due to talks of leveraging the EFSF
in order to buy high-risk sovereign debt.

The chatter did the trick as EUR/USD reached a top gain of $1.3666.

Tension between Germany and The US rose as Germany told the White House to sort out
its own mess before giving gratuitous advice to others (Telegraph).

Double-top formed on hourly charts, sending the pair lower.

Focus will be on any updates from Germany on the EFSF bill vote and The Core Durable
Goods In The US at 12:30 GMT.

GBP

Since it was rumored that HSBC has to cover the FX of its Oct 6 dividend payment on Monday
(26th Sep) the Sterling’s buyers are on fire, rocketing the pair by +247 pips to a high
of $1.5703.

GBP will try to advance on BOE Credit Conditions Survey, which is scheduled for release at
08:30 GMT.

Do not forget that this coming Friday EU/DEFRA farm payment of E3.0-3.5bln into the UK may
provide a further lift in GBP/USD.

Commentary

Double-top may radiate further falls.

A double-top reversal has been confirmed on 4hr chart in USDCHF. Despite the recent gains,
aided by a bullish hammer the gains may soon diminish as 0.9004 resistance threatens to
hold.

Failure to break above 0.9004 may lead to a corrective weakness to the 55MA at 0.8935.

A firm breach of 55MA will confirm the resumption of the downtrend to take the graph down
to the double-top’s projected target at 0.8867.

A firm break above 0.9025 defers this view.

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The review is presented for instructive purposes in condition it will not be the key factor for trading.
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