Forex News – 16th Sep 2011

September 16 Market Review

 

EUREUR/USD gained yesterday +85 pips in one minute European Central Bank and other
major central banks announced coordinated efforts to pump dollars into European banks
to avert a liquidity crisis.
ECOFIN Meeting is begin ning today, any comments regarding the euro-zone may have a
great impact on the market. Do watch the intraday charts for EUR/USD.
The pair managed to cling to those gains but bullish momentum appears to be fading
at the time of this writing. Support is tipped at $1.3825, resistance seen at $1.3937.

GOLD

As risk appetite is back into play as several central banks team up to pump liquidity into
the markets. As risk-aversion as been temporarily diverted,
Gold is beginning to correct its early gains.
Bloombex clients were tipped yesterday that further declines may be seen towards $1.750 were
the next support lies. It has been suggested that the large sell-off in gold began due to
traders liquidating their positions to cover the losses made in stocks.
Resistance is drawn at $1,791.

Commentary

EUR/USD may be pausing for a breath before further rise
There many signals for further sales in the pair, such as Evening dodji star that
formed on EURGBP 4hr chart. If you are not in a sell position you may want to pay
closer attention to 10MA.
If the current candlestick closed above the 10MA, currently at $1.3807, there is a
potential for a partial reversal. Gains may uplift the graph towards $1.3870 initially,
then for a re-test of $1.3935.
A firm break above $1.3935 sees gain increasing further towards $1.4100 due to
cup-and-handle reversal pattern.
A break below 21MA ($1.3734) negates this view.

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