Forex News – 4th October 2011


Dark cloud blankets the euro-zone as S&P concerned Europe may enter a double-dip

recession according to recent reports.

It didn’t take much for the FX market and EUR/USD sell-off continued into today,
making a new low for the year at $1.3144.

Despite some recovery EUR/USD trend did not reverse all of the sudden to bullish.
Main focus would be on ECB President at 13:00 GMT.

The euro may suffer greatly should he confirm S&P’s fears of a double recession in Europe,
worth following on.

Intraday support seen at $1.3149, resistance at $1.3225.


The odds for a QE expansion in The UK this coming Thursday are beginning to weigh on
GBP pairs and crosses.

GBP/USD has shed close to +200 pips since yesterday (currently trading at $1.5366) as

investors sell the sterling on concerns of QE.

It has been suggested a higher QE may be employed, more than the market expects.

Intraday support for GBPUSD can be found at $1.5331, resistance at $1.5423.

Another pause for breath?

Despite earlier declines as I mentioned yesterday the pair appears to be stalling again,
taking its time before another dip down but I cannot avoid the risk for a push higher
before further falls.

On such a move, a clean break above $1.3213 may take the pair towards $1.3269, possibly even
$1.3321 before resuming its downtrend.

A break under $1.3149 suggests no rebound may be seen at this stage, deeper declines may be

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