Forex News – 5th October 2011

EUR

As I suggested in yesterday’s EUR/USD observation a firm rebound was seen in the
pair. It has been reported that Euro zone countries would provide more funds to
the continent’s banks, which lead to a brief rally in the pair.

Moody downgraded Italy’s rating by 3 notches to A2, which so far has been shrugged
off by the market although it may come to haunt EUR/USD later on in today’s session.

German Merkel press conference with EU Barroso at 14:20GMT is the main focus for today.

Intraday resistance seen at $1.3330, support at $1.3280.

CHF

Rumors have been flooding the market the EUR/CHF floor may be raised to Chf1.3000.
The main resistance the pair will have to pass is 200DMA, which is currently marking
Chf1.2335.

Tomorrow at 07:00am GMT we will know exactly how much funds were used to set the current
floor in EURCHF at 1.2000.

Commentary

Countdown to EURJPY launch began.

After steep declines it appears the pair has bottomed out at 100.70 and managed to make
a top gain of +190 pips (approx).

Closely pay attention to a potential reversal pattern named cup-and-handle. I am using
50% Fibo retracement as my resistance at Y102.82. A firm break above may launch the
pair higher towards Y103.92, even posing a threat to a full correction at
Y104.91.

The pair must remain above Y101.50 in order to affirm the reversal pattern.

A break below Y101.50 defers this view.

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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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