Forex News – 3rd October 2011

EUR
As expected, EUR took a deep dive to $1.3311 as uncertainty continues to
loom over Greece. According The Times, the Government admitted that it would
miss its main deficit reduction targets, blaming a much deeper recession than
it expected.

Some recovery has taken place as EURUSD is testing its -75 basis point level,
which is when central banks decided to inject USD liquidity a couple of weeks
ago, EURUSD rocketed by over +100 pips in a very short time.

Focus today would be on the ISM Manufacturing PMI at 14:00 GMT.

GBP

The reversal pattern on Gold remains intact despite earlier declines.
The DMA provides solid support, which may yield to further gains in
coming days.

Focus would be on key interest rate decisions this week that would be
made by the RBA, BOJ, ECB and BOE. Gold is currently trading at
$1,656.90.

Initial resistance in gold is marked at $1,674.

Commentary
Pause For a Reload.

Following the sharp selling pressure that’s been dominating the pair sideway’s
activity has been noted on the charts.

This is simply a pause while the big sellers reload their positions. $1.3319 is
the trigger for those short oositions to be fired into the FX markets.

Initial target is close by at $1.3249, then $1.3200. Oversold readings from the
RSI on such a move may provide difficulties to the graph from achieving its
bearish-flag objective at $1.3100 in a short period of time.

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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.
The contents of this publication should not be construed as an express or implied promise, guarantee
Or implication by Bloombex.

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