Forex News – 7th October 2011


ECB President Jean-Claude Trichet concluded his last meeting yesterday. He remained firm
and did not surrender to the market’s pressure of lowering the rates.

There a small debate in the market as to where to take EURUSD and eventually the bull camp
has won, lifting the pair by over +150 pips to a high of $1.3461.

Focus for today remains only on the non-farm data, which is considered as a market-moving
event. The data is due at 12:30 GMT. Also, EU Barroso speaks at 15:00GMT. Traders wil pay
close attention to what he has to say, specifically about Greece.


The Canadian Dollar has gained against USD. Bloombex clients were updated on the ‘shooting star’
that formed on a daily chart, which did confirm a reversal in the pair.

Please note that hammer that formed yesterday on the daily chart may not signal a reversal but
it is a warning sign for those that are currently shorting the pair.

Focus remains on the employment data due at 11:00am GMT.


Time For a Rewind.

21MA has been capping the pair on several occasions, implying that a risk for a
correction is near.

A break under 0.9161 (38.20%) will confirm H&S reversal pattern, sending the pair
with a one-way-ticket towards 0.9094 with a potential for further declines towards
0.9000 not ruled out.

A sustained break above 0.9217 negates this view.

The pair is flirting with Y80.64 mark at the time of this writing, attempting to continue to recovery from
the double-bottom that took place in the past several days.

USD/JPY may face difficulties breaking above Y80.57/64 as it failed to do so in the previous session.
Failure to break above Y80.64 may lead to a corrective weakness towards 55MA, currently seen
at Y80.34. A break under will open the way for A full correction towards Y80.00.

A break above Y80.64 will open the way to Y81.05, which is seen as the target of the double-bottom
reversal pattern that Was confirmed last night.

The publication cannot be distributed, copied and/or make any other usage without Bloombex Ltd.
Consent and written approval.
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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