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Market Review - 05/10/2010 23:04 GMT

Euro rallies to a eight-month high against dollar amid Fed easing speculation

The single currency surged to an 8-month high against dollar on Tuesday, as the quantitative easing from BOJ fueled the speculation that U.S. Fed would pump more money to stimulate the economy and boosted demands of high-yield currencies and commodities. The dollar index fell by more than 1% to an 8 1/2-low of 77.698 on dollar's broad-based weakness.

Although the single currency dropped initially to 1.3637 in Asia after RBA kept interest rate unchanged, the pair rebounded from there on dollar's broad-based weakness, as the quantitative easing from BOJ reinforced the speculation that ...

INTRA-DAY GBP/USD: 1.5878

Last Update At 05 Oct 2010 09:10 GMT

Although cable's present retreat after intra-day
rally fm 1.5752 to 1.5914 earlier suggests a minor top is in place n consolidation is now envisaged, as long as 1.5844/48 holds, upside bias remains but abv said res needed to extend to 1.5924.


Still favour buying again on dips, stop below
1.5844, break signals top is made, 1.5810/20 later.

Range Forecast
1.5865 / 1.5895

Resistance/Support
R: 1.5914/1.5924/1.5953
S: 1.5870/1.5844/1.5773

http://www.acetraderfx.com

INTRA-DAY EUR/USD OUTLOOK

Last Update At 05 Oct 2010 06:03 GMT

Rate : 1.3685

Despite euro's brief drop to 1.3637 after RBA's
rate decision, current cross-inspired rebound after BOJ cut overnight call rate target suggests intra-day low has possibly been made n consolidation with upside bias is seen for gain to 1.3723 n 1.3746.

Buy on dips with stop as indicated, break wud
risk stronger pullback but said sup wud hold.

Range Forecast
1.3685 / 1.3723

Resistance/Support
R: 1.3723/1.3746/1.3785
S: 1.3637/1.3629/1.3619

http://www.acetraderfx.com

Market Review - 04/10/2010 22:20 GMT

Euro tumbles from a 6 1/2-month high on renewed concerns over European debt

Euro tanked from a 6 1/2-month high against dollar on Monday, as renewed worries about European debt crisis dampened investors' demand for the single currency.

Despite euro's rise to a 6 1/2-month high of 1.3809 in New Zealand due to euro-supportive comments from Chinese Premier Wen over the weekend, the single currency fell from there on profit-taking after last week's strong rally and dropped to 1.3746 in Asian morning. Later, euro fell sharply to 1.3666 in European morning on reports of active sales by Asian name before staging a recovery to 1.3723 and then traded sideways in NY ...