Supports & Resistances


0.8614; capping at 0.8627 after rally from 0.8553

Sellers  0.8635 0.8650-60 0.8685 0.8700 0.8725-35 0.8750 

Buyers  0.8600 0.8575-85 0.8550-60 0.8525-30 0.8500


114.62; Nikkei-led drop in Asia from 115.52 .

Sellers  114.75-85 115.00 115.25-35 115.50-60 115.75-85 116.00

Buyers 114.40 114.20-25 114.00-10 113.75-85 113.50 113.20-25 113.00 112.75-85 112.50 


1.2500 after an early fall; ECB meeting later on

Sellers  1.2515 1.2525-30 1.2550-55 1.2585 1.2600 1.2620-25 1.2650-55 1.2670 1.2685 1.2700

Buyers  1.2480-85 1.2470 1.2440-50 1.2425 1.2400-10 (barrier 1.2400) 1.2385 1.2350


1.5985 in a tight range; 1.5950 holding dips; BOE on the agenda. Sellers still above 1.6000

Sellers 1.6000-10 1.6025-30 1.6040-50 1.6065 1.6080-85 1.6100-10 1.6150-60

Buyers 1.5950 1.5920-30  1.5900 1.5885 1.5865 1.5850 1.5830 1.5800-10

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Our two bits for the day

The European markets opened in red today, with FTSE -0.2%, DAX -0.4%, CAC40 -0.4% and FTMIB -0.6%.

The markets await once more the meeting and decision of the European Central Bank. Few analysts think, though, that they will announce new policies since they have already stated their intention to assess the impact of the last stimulus measures. Inflation has risen in October, signing a positive tendency. However, the markets will be watching the policy rate decision and any reference that EBC is considering to buy corporate bonds, which could have a negative impact on the euro. Also, the markets will be awaiting any comments on the rumors that some of the ECB members might be displeased with Draghi’s leadership style and communication strategy. The Bank of England also meets today to decide on its policy rate. No change is expected either.

Here is a list of today’s indicators and events.


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EURUSD: Daily pivots

eurusd pivots

EURUSD has managed to ease off from the lows at 1.2466 regions and has been pushing higher. However, these minor gains are likely to be capped near the major support turned resistance level between 1.255 and 1.252 levels. We also notice that the pair has made a small bearish continuation flag pattern, hinting to more declines. A break and possibly a retest of the flag pattern is essential to set the bias. However we notice the support region at 1.24665 which could possibly hold any further declines. The range created between 1.255 and 1.24655 is likely to play out until the ECB’s meeting later this week.

Source: Forex Crunch

Author: John Benajmin

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Supports & Resistances



Currently 1.2506

Sellers  1.2525-30 1.2545-50 1.2585 1.2600 1.2620-25 1.2650-55 1.2670 1.2685 1.2700

Buyers 1.2500 1.2480-85 1.2470 1.2440-50 1.2425 1.2400-10 (barrier at 1.2400) 1.2385 1.2350


1.6000 going nowhere fast.

Sellers  1.6010 1.6025-30 1.6040-50 1.6065 1.6080-85 1.6100-10 1.6150-60 1.6180-85 1.6200-10

Buyers 1.5985 1.5960-70 1.5940-40 1.5925 1.5900-10 1.5885 1.5865 1.5850 1.5830 1.5800-10


113.63 after lows earlier of 113.28 and a subsequent rally above 113.70.

Sellers 113.80-85 114.00-10 114.25 114.50 114.85 115.00

Buyers 113.20-25 113.00 112.75-85 112.50 112.30-35 112.00 111.85  111.50

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Dollar climbs on central bank expectations


(Reuters) – The dollar reached multi-year highs against both the yen and euro on Monday, adding to gains built on the Bank of Japan’s surprising stimulus announcement from last week, but equity markets slipped after weak data out of China and Europe.

U.S. stocks were little changed, as investors paused after a sharp rally on Friday and ahead of U.S. elections on Tuesday, although economic data pointed to a slowly strengthening economy.

“The bull market may be old and wrinkly, but it is still alive and there’s nowhere else for investors to really go besides U.S. equities,” said Paul Schatz, president and chief investment officer at Heritage Capital in Woodbridge, Connecticut.”

An index of global equities slipped after data showing China’s economy losing momentum. The MSCI all-country world equity index .MIWD00000PUS was off 0.5 percent.

China’s services sector grew at its slowest pace in nine months, the National Bureau of Statistics said, as a cooling property sector weighed on demand.

Another official purchasing managers’ index survey on Saturday showed factory activity in the world’s second-largest economy unexpectedly fell to a five-month low in October as firms fought slowing orders and rising borrowing costs.

Final European manufacturing PMI data for October showed activity in France contracted by less than first reported, while German factory activity rebounded after a slight shrinkage in September.

European shares fell, pulling back from a four-week high after sharp gains last week. The pan-European FTSEurofirst 300 index .FTEU3 dropped 0.8 percent. [.EU]

Two U.S. industry reports showed the manufacturing sector continues to expand, while automakers reported their strongest October sales in years.

The Dow Jones industrial average .DJI was down 19.24 points, or 0.11 percent, at 17,371.28. The Standard & Poor’s 500 Index .SPX was up 1.27 points, or 0.06 percent, at 2,019.32. The Nasdaq Composite Index .IXIC was up 18.13 points, or 0.39 percent, at 4,648.87.

The BOJ last week said it would boost its massive stimulus spending, due to worry about weak growth. There are expectations the European Central Bank, which meets on Thursday, will also eventually resort to large-scale purchases of government bonds.

The dollar climbed as high as 113.90 yen JPY=, its highest level since December 2007 and was last up 1.3 percent at 113.73.

The euro EUR= hit a low of $1.2441, its weakest since August 2012. It was last down 0.2 percent at $1.2498.

The dollar .DXY touched highs not seen since mid-2010 versus a basket of currencies and was on track for a fourth straight day of gains.

The benchmark 10-year U.S. Treasury US10YT=RR note was down 13/32, the yield at 2.3802 percent.

The strong dollar and the Chinese data helped push crude oil prices lower. Brent crude LCOc1 was last down 0.5 percent at $85.33 a barrel while U.S. crude shed 0.6 percent to $80.07.

The greenback’s strength also led to a decline in gold XAU=, which held near four-year lows. The metal last traded down 6.6 percent $1,168.74 an ounce.

Author: Chuck Mikolajczak, Reuters


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