Technical Analysis 18/10/2010 FXCBS

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Monday October 18 , 2010

Previous session overview

The pair Euro against the U.S. dollar traded during the Asia session between the lowest level at 1.38552 and the highest level at 1.39891, the pair trading now around the level of 1.38721.

Regarding to the pair Sterling against the U.S. dollar traded during the Asia session between the lowest level at 1.58752 and the highest level at 1.60035, the pair trading now around the level of 1.58777.

Finally the pair U.S. dollar against the Japanese Yen traded during the Asia session between the lowest level at 81.125 and the highest level at 81.483 , the pair trading now around the level of 81.170.

Market Expectations

EUR/USD : We expect in general that the pair Euro against the U.S. dollar still in a bullish movement until now, and the downside for the pair last Friday and this morning still just a correction movement for the pair, so we expect that the pair will return to rise up again to retest the level of 1.41500, these expectations require stability of the trading above the level of 1.37700.



GBP/USD : We expect today that the pair Sterling against the U.S. dollar will rise up to the level 1.59350 first then to the level of 1.60490, these expectations require stability of the trading above the level of 1.58400.



USD/JPY[/color] : We expect a bullish intraday trend, supported by a bullish crossover appearing on Stochastic. The expected targets start at 82.450 then 82.850, which require the daily closing above 81.000 to prevail.






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