Forex News – 4th October 2011

EUR

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.

GBP

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.

Commentary
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
seen.

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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.
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