FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

With the global stockmarkets in a kind of a "Crash in Installments" the euro and the British pound have been pummeled most of yesterday and in late Asian trading against their dollar, yen and Swiss franc pairs. The European morning hours saw some recovery in these two weaklings so far. With its renewed downmove, the euro has only broadened its trading range though, which is still sidewards against the dollar, so the conclusion for a consolidation/correction phase of the Greenback`s recent two

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

EURUSD: Failure Ahead of The 1.3852/82 zone Suggests A Retest of The 1.3443 Level .–EUR looks to head to the downside again as its attempt on the upside was halted ahead of the 1.3852/82 zone, its Sept 11’08 low/July’07 high opening up risk towards its YTD low at 1.3443…  GBPUSD: GBP Clears The 1.7049 Level, Triggers Long Term Downtrend - As highlighted in our Thursday analysis, with a loss of the 1.7049 level achieved and its June’03 high at 1.6857 being challenged in early morning

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

Gory equity unwind continues to boost CHF, JPY and USD. US hinting that it may insure all deposits and follow UK bank rescue model. LATEST HEADLINES New Zealand Sep. REINZ House Sales fall -23.7% YoY vs. 034.0% in Aug. Switzerland Sep. Unemployment Rate steady at 2.4%. THEMES TO WATCH – UPCOMING SESSION Key Risk Events (All times in GMT) Norway Sep. Producer Prices (0800) Norway Sep. CPI (0800) Canada Unemployment Rate and Net Change in Employment (1100) Canada Aug. International Merchandise

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

Dow Jones : Resistance(daily close) : 10 091.30 , 10 935.23, 11 164.57, 344.92 and 11 520.30. Then 11 749.22, 11 970.00, 12 152.82, 12 600.24, 12 982.20, 13 162.50 and 13 320.00.   Break of the latter will lead to 13 567.60, 13 668.74 and 13 792.53 ( published on October 10 , 2008). Support (daily close): 8403.77 , 8257.46, 8100.00 and 7920.08. Then 7695.13, 7464.38, 7290.20 and 7177.50. Break of the latter will lead to 7020.34, 6817.50, 6783.72, 6660.11 and 6484.2220 ( published on

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

EURUSD: Nearer Term Corrective Recovery Targets A Retest Of The 1.3852/82 –As positive higher closes continue to be seen since a low of 1.3443 was printed on Oct 06’08, further upside follow through on the pair’s present corrective recovery looks to push towards a retest of its support turned resistance zone at the 1.3852/82 zone… GBPUSD: GBP Surges To A New Low, Targets The 1.7049 Level - GBP reversed its intra day gains on Wednesday printing its lowest price since Jan 2006 and closing below

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

Three very rare actions might cause the turning point in the global credit crisis. After the unprecedented announcement Tuesday by the U.S. Federal Reserve that it will lend directly to the corporate sector, the world’s central banks cut interest rates by half a percentage point in a coordinated move Wednesday, and, if that’s not enough, the British government promised to secure lending among the country’s banks. If that does not bring relief, what else could? In the financial markets yesterday

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

Please find enclosed today's WEEKLY FOREX FOCUS EUR/USD - USD/JPY GBP/USD - USD/CHF USD/CAD - AUD/USD EUR/JPY - EUR/CHF EUR/GBP - DOLLAR INDEX

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

British rescue plan wins critical praise - but not from the market as GBP tumbles. Week to end with big CDS settlement. LATEST HEADLINES Japan Aug. Machine Orders out at -14.5% vs. -2.8% expected Australia Sep. Employment Change out at 2.2k vs. 0.0k expected Australia Sep. Unemployment Rate out at 4.3% as expected Germany Sep. Wholesale Price Index out at -0.6% as expected Germany Aug. Trade Balance out at 7.3B vs. 9.0B expected Japan Sep. preliminary Machine Tool Orders out at -20.7% YoY vs.

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

The dire state of the British economy may rest in the hands of the Bank of England. With their sluggish economy nearing recession-like numbers, the bank may be required to continue its rate cutting campaign. Canada on the other hand has seen its growth numbers bulldoze through economist forecasts. Wednesday’s coordinated rate cutting effort may be the last of such actions by the Bank of Canada, but probably not for Mervyn King at the English central bank. Trading Tip – Volatility continues to

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

Dow Jones : Resistance(daily close) : 11 520.30 , 11 749.22, 11 970.00, 12 152.82, 12 600.24, 12 982.20, 13 162.50 and 13 320.00. Then 13 567.60, 13 668.74 и 13 792.53.   Break of the latter will lead to 13 972.50, 14 045.62, 14 124.38 and 14 225.63 ( published on July 14 , 2008). Support (daily close): 11 036.25, 10 980.00, 10 930.78, 10 800.00 and 10 718.45. Then 10 535.60, 10 428.80, 10 313.44 , 10 125.00 and 10 046.30. Break of the latter will lead to 9990.00, 9911.25, 9722.70,

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

Commodity Currencies Plunge on Global Rate Cuts The dollar, trading mixed against its rivals Wednesday, was sharply higher against the commodity currencies but lower versus the yen and euro. In an unprecedented move to alleviate the financial crisis and global economic slowdown, major six central banks each cut benchmark interest rates 50 basis points. Sterling fell after the UK government announced a package of new measures to help the banking system which could total £400 billion ($692

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

The Euro has fallen sharply against the US Dollar in recent weeks, finally finding a bottom a few days ago at 1.3332, which corresponds with a 61.8% Fibonacci retracement from the all-time high of 1.6037 Where do we go next from here? Currently, price is in the process of moving up to test the next Fib level at 1.3848, meanwhile the daily 21 exponential moving average is gradually working its way down from 1.4081 - what price does when it reaches that level will give some clues as to further

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

- Today, the central banks of the US (Fed), the UK (BoE), Canada (BoC), the euro zone (ECB), Sweden (RB) and Switzerland (SNB) announced a coordinated 50bp rate cut.  - Below are our initial thoughts:  - The coordinated action is a strong signal that the central banks are now working together to fight the financial crisis and support the global economy. We expect further rate cuts from all participating central banks over the coming year as they work to fight the economic

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

EURUSD: Momentum Subsides, Nearer Term Corrective Recovery Could Shaping Up-EUR closed higher Tuesday after hitting an intra day high of 1.3743 off its recent low at 1.3443…  GBPUSD: Bounces Off Intra Day Low, Trades Above The 1.7447 Level-After an intra day weakness saw the pair decline to its lowest price since late April’06,recovery off that low followed pushing GBP higher to close the session at 1.7464… EURUSD: EUR closed higher Tuesday after hitting an intra day high of 1.3743 off

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

No one knows if the bold Fed move yesterday to lend directly to the corporate sector will eventually open up the gummed-up credit markets but that certainly is the right thing to do now, hopefully waking up the paralyzed financial industry. Together with the outlook on further U.S. interest rate cuts, that Fed decision sets a negative aspect for the Greenback, at least momentarily. Chart technical analysis calls for a downward correction anyway, since the long-term situation is still overbought

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

UK bank rescue plan this morning. Fed steps easing some money market stress and could throw the EUR some support LATEST HEADLINES US Aug. Consumer Credit contracted $-7.9B vs. +$5.0B expected ABC Weekly Consumer Confidence fell to -43 from -41 last week UK Sep. Nationwide Consumer Confidence fell to 50 vs. 49 expected and 53 in Aug. UK Sep. NIESR GDP estimate at -0.2% Australia Oct. Westpac Consumer Confidence out at -11.0% vs. +7.0% in Sep. Australia Aug. Home Loans out at -2.2% vs. -1.0%

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

EURUSD: Having opened the week sharply lower trading to a low of 1.3443 on Monday, EUR is now expected to head further lower in continuation of its medium term downtrend triggered yesterday. Violation of a key support level at the 1.3682/66 zone, its April’07/Dec’04 highs has now pave the way for additional decline towards its Dec’04 high/August’07 low at 1.3366/61.Below there will bring EUR towards the 1.3312/1.3264 zone, its .618 Ret(1.1640- 1.6038 rally)/Jun’07 low. Higher timeframe charts

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

The market this European morning nourishes further expectations of interest rate cuts in Europe, as illustrated by the lately more stable British pound coming under pressure against the dollar. The market for some time now is by far not as coherent against the Greenback as it was, with the yen the strongest and the euro the weakest currency. Today we see more volatility in the major pairs, with not only the FOMC’s minutes published at 20:00 CET but with other Fed officials to speak before that,

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

Dow Jones : Resistance(daily close) : 11 520.30 , 11 749.22, 11 970.00, 12 152.82, 12 600.24, 12 982.20, 13 162.50 and 13 320.00. Then 13 567.60, 13 668.74 и 13 792.53.   Break of the latter will lead to 13 972.50, 14 045.62, 14 124.38 and 14 225.63 ( published on July 14 , 2008). Support (daily close): 11 036.25, 10 980.00, 10 930.78, 10 800.00 and 10 718.45. Then 10 535.60, 10 428.80, 10 313.44 , 10 125.00 and 10 046.30. Break of the latter will lead to 9990.00, 9911.25, 9722.70,

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

100-bp cut from RBA sees AUD bouncing vigorously from yesterday's lows. Risk aversion hopefully has peaked in the short term. LATEST HEADLINES New Zealand Q3 NZIER Business Opinion Survey rose to -19 from -64 Australia's RBA cut rates 100 bps vs. a 50 bp cut expected Australia Sep. AiG Performance of Construction Index fell to 31.8 vs. 43.1 in Aug. Bank of Japan left target rate unchanged at 0.50% as expected THEMES TO WATCH – UPCOMING SESSION Key Risk Events (All times in GMT) Norway Aug.

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

Last week, the U.S. Dollar has gained ground against all other currencies as the fears of a systemic risk diminished. Thanks to that, our last LONG USD/CAD recommendation exceeded our initial targets. This strength is also due to the fall in oil prices led by fears of worldwide economic growth. On a technical point of view, the USD/EUR and the USD/GBP remain well oriented but their daily RSI lack upward momentum. The USD/JPY is still under pressure and is challenging its support. The USD/CAD

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

SEK gets another hit as market turmoil spreads to Europe • Interbank risk premia remain elevated as credit markets are still under severe stress and European stock markets fall heavily amid rising concerns about European problems and lack of policy action over the weekend.  • Swedish stock market is not faring well (down >5%!), not even on a relative basis, so it's not surprising to see the SEK trading weaker.  • Measures announced by Swedish authorities this morning are welcome

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

Market action looks dire. USD and JPY continue to power strong as TARP bailout package failed to ignite rally in risk appetite. THEMES TO WATCH – UPCOMING SESSION Key Risk Events (All times in GMT) Canada Aug. Building Permits (1230) Canada Sep. Ivey PMI (1400) US Fed's Evans to Speak (1600) New Zealand Q3 Business Opinion Survey (2100) Australia Sep. AiG Performance of Construction Index (2230) UK Sep. NIESR GDP Estimate (2301) Japan BoJ Target Rate (no time given) Australia RBA Cash Target

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

Renewed turmoil at the beginning of the week, this time in the world equity markets due to genuine sorrows about the global economy, did not hurt the USD’s bullish stance in early European trading. It is just consolidating its levels, with a downward correction move to come in right now. We expect this correction / consolidation stance to continue in today’s market, with the trading ranges explained below. No data known as market movers will be released today. by George Clement Intraday Market

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

While volatility surged across the markets after the US House of Representatives shot down the first vote on the $700 billion bailout plan this past Monday, the successful second attempt on Friday found a far more muted response. Risk Appetite And Carry Trade Find Little Relief In Bailout Approval Are Europe And The UK Heading For Financial Crises Of Their Own? Market Shifts From High Risk On Credit Crisis To Low Returns With Recession While volatility surged across the markets after the US

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

EURUSD - EUR’s medium term downside pressure continues to be supported by negative closes recorded by its quarterly, monthly and weekly charts and the fact that a fresh leg of decline was triggered by a loss of its YTD low at 1.3882 on Friday following the completion of its nearer term recovery at 1.4869.EUR’s vulnerability to further downside losses is now expected towards its April’07 high at 1.3682 with a clean break lower targeting its Dec’04 high/August’07 low at 1.3366/61 and possibly

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

Dow Jones : Resistance(daily close) : 11 520.30 , 11 749.22, 11 970.00, 12 152.82, 12 600.24, 12 982.20, 13 162.50 and 13 320.00. Then 13 567.60, 13 668.74 и 13 792.53.   Break of the latter will lead to 13 972.50, 14 045.62, 14 124.38 and 14 225.63 ( published on July 14 , 2008). Support (daily close): 11 036.25, 10 980.00, 10 930.78, 10 800.00 and 10 718.45. Then 10 535.60, 10 428.80, 10 313.44 , 10 125.00 and 10 046.30. Break of the latter will lead to 9990.00, 9911.25, 9722.70,

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

The new highs the Greenback reached yesterday in the majors are at long-term resistance levels now. We expect these levels to hold in the days to come, giving the USD time to digest its new surge. The major pairs showed some of the correction moves in early European trading already, reflecting the overbought condition of the U.S. currency. We expect the sideways market to continue today, with trading ranges offering enough room for further downward corrections for the USD, as described in

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

EURUSD: EUR pushed through and closed below its strong YTD support at 1.3882 Thursday testing a low of 1.3747 before ending the session at 1.3804.While maintaining its current momentum and trading below its invalidated support, weakness is expected towards another key support located at its April’07 high at 1.3682 with a cut through there opening the door for further lower prices towards its Dec’04 high/August’07 low at 1.3366/61.We expect the pair to take a breather after the latter level is

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

Key test for market sentiment today with TARP vote up in the House and after US equities touched recent lows yesterday. MAJOR HEADLINES US Aug. Factory Orders fell -4.0% vs. -3.0% expected Australia Sep. AiG Performance of Service Industries rose to 44.9 from 39.3 in Aug. Switzerland Sep. CPI out at +0.1% vs. -0.1% expected THEMES TO WATCH – UPCOMING SESSION Key Risk Events (All times in GMT) Norway Sep. PMI (0700) Germany Final Sep. Services PMI (0755) EuroZone Final Sep. Services PMI (0800)

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

EUR/USD Breaks Long-Term Uptrend The dollar rose against most key currencies Thursday as Libor soared to new highs, the commercial paper market slumped and the credit crunch deepened. Increased risk aversion supported the dollar as investors sold risky assets and repatriated the funds to US government papers, and international banks scrambled to find dollar funding in a dysfunctional interbank market. The yen gained as investors unwound carry trades. US stocks fell sharply as fears about

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

The USD continued its bid tone in late Asian and early European trading, especially against the euro, which traded weaker against other currencies, too. Today at 13:45 CET, the ECB will publish their monetary policy, which, by wide expectations, includes an interest rate cut for the Eurozone this time. Some market participants expect even a substantial cut in the euro rates, an anticipation that could be disappointed. We would therefore not enter the market before the official ECB announcement.

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

EURUSD: EUR was seen weakening through its YTD low at 1.3882 in early morning trading today. This is coming on the back of its Wednesday losses following its recent recovery failure at the 1.4867 level on Sept 22’08.Convincingly taking out the 1.3882 level will pave the way for a run at the 1.3852 level, its July’07 high followed by its April’07 high at 1.3682 and then its Dec’04 high/August’07 low at 1.3366/61.This view remains in alignment with its medium term weakness of the 1.6038 level as

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

ECB on tap after 1.4000 falls again overnight. Huge trendline under fire in EURUSD in 1.3900 area - is 1.3400 next? MAJOR HEADLINES Australia Aug. Trade Balance out at 1364M vs. 200M expected New Zealand Sep. ANZ Commodity Price Index fell -4.9%, the most in 21 years China Sep. CLSA Manufacturing PMI out at 47.7 vs. 49.2 in Aug. UK Sep. Nationwide House Prices fell -12.4% YoY as expected THEMES TO WATCH – UPCOMING SESSION Key Risk Events (All times in GMT) Norway Sep. Unemployment Rate (0800)

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

Please find enclosed today's WEEKLY FOREX FOCUS EUR/USD - USD/JPY  GBP/USD - USD/CHF USD/CAD - AUD/USD EUR/JPY - EUR/CHF EUR/GBP - DOLLAR INDEX

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

As we know it, Japan’s economy has been labeled recessionary given its two consecutive quarters of negative strength. July GDP data shows the North American country seeing some relief, expanding 0.7% in that month alone. With these two conditions in minds both monetary authorities are unlikely to react to growth as inflation is only now beginning to retreat. Rate cuts here would only add upward price pressure that these two banks have sought to avoid. As such, yield-gap neutrality may continue

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

Dow Jones : Resistance(daily close) : 11 520.30 , 11 749.22, 11 970.00, 12 152.82, 12 600.24, 12 982.20, 13 162.50 and 13 320.00. Then 13 567.60, 13 668.74 и 13 792.53.   Break of the latter will lead to 13 972.50, 14 045.62, 14 124.38 and 14 225.63 ( published on July 14 , 2008). Support (daily close): 11 036.25, 10 980.00, 10 930.78, 10 800.00 and 10 718.45. Then 10 535.60, 10 428.80, 10 313.44 , 10 125.00 and 10 046.30. Break of the latter will lead to 9990.00, 9911.25, 9722.70,

FXstreet.com: Technical: Forex Trading Strategies
FXstreet.com: Forex Trading Strategies. The general trend on currencies analyzed by respected professionals.

USD Rises, Awaiting Congress The dollar rose against most key currencies Wednesday as investors awaited tonight’s historic vote by the US Senate on Treasury’s $700 billion financial-market rescue bill. Today’s ISM US manufacturing report was weak, while European and Japanese economic data also indicated decelerating economic growth. The dollar edged near its highs of mid-September. The fate of the $700 billion rescue package will determine if the greenback can advance beyond these highs. We