Forex Technical & Market Analysis FXCC Sep 26 2013

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Forex Technical & Market Analysis FXCC Sep 26 2013

SPX drop longest since 'fiscal cliff' debacle of December 2012

The SPX has dropped over 1.9 percent during the past five trading days as investors remain cautious as to whether or not the pending government shutdown will eventually harm USA economic growth. The current fall is now the longest witnessed on the index since Dec 28th 2012, when USA lawmakers clashed over the impending automatic spending cuts and tax increases known as the "fiscal cliff". Sterling advanced 0.4 percent to $1.6070 late in the London session after rising to $1.6163 on Sept 18th, which was the highest level seen since Jan 11th. The U.K. currency was little changed at 84.22 pence per euro after appreciating to 83.53 pence on Sept 18th, the strongest level seen since Jan 17th. Sterling strengthened towards its eight-month high versus the dollar after a gauge of U.K. retail sales from the UK's CBI increased in September, adding to signs the U.K. economy is improving, slowly. Sterling rose versus all of its 16 major counterparts before a report today that analysts believe will confirm that the U.K. economy expanded last quarter by the estimated 0.7%. The pound has in fact been the best performer during the past six months, appreciating 5.8 percent versus the dollar.


FOREX ECONOMIC CALENDAR :
2013-09-26 08:30 GMT | UK Gross Domestic Product (YoY) (Q2)
2013-09-26 12:30 GMT | US Gross Domestic Product Annualized (Q2)
2013-09-26 14:00 GM | US Pending Home Sales (YoY) (Aug)
2013-09-26 23:30 GMT | JP National CPI Ex Food, Energy (YoY) (Aug)

FOREX NEWS :
2013-09-26 05:37 GMT | USD/JPY surges as Nikkei cracks the 14,500
2013-09-26 05:36 GMT | EUR/USD gathering steam for another upside move ahead of European
2013-09-26 04:28 GMT | GBP/USD consolidating big gains from Wednesday; first support 1.6046
2013-09-26 03:17 GMT | GBP/JPY propelled to 159.27 highs

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EURUSD
HIGH 1.35306 LOW 1.35116 BID 1.35209 ASK 1.35213 CHANGE -0.03% TIME 08 : 47:50



OUTLOOK SUMMARY : Up
TREND CONDITION : Upward penetration
TRADERS SENTIMENT : Bearish
IMPLIED VOLATILITY : Medium

MARKET ANALYSIS - Intraday Analysis

Upwards scenario: An element of resistive measures could be found at 1.3538 (R1). Clearance here would suggest further uptrend development towards to our interim target at 1.3562 (R2). Final aim locates today at 1.3584 (R3). Downwards scenario: On the other side, depreciation below the support barrier at 1.3507 (S1) might provide sufficient space for the recovery action. In such case we would suggest next intraday targets at 1.3483 (S2) and then 1.3459 (S3).

Resistance Levels: 1.3538, 1.3562, 1.3584
Support Levels: 1.3507, 1.3483, 1.3459

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GBPUSD
HIGH 1.60865 LOW 1.60671 BID 1.60771 ASK 1.60775 CHANGE -0.01% TIME 08 : 47:51



OUTLOOK SUMMARY : Up
TREND CONDITION : Upward penetration
TRADERS SENTIMENT : Bearish
IMPLIED VOLATILITY : Medium

Upwards scenario: On the upside, fractals level at 1.6090 (R1) offers an important resistive structure. Any penetration above that level would suggest next intraday targets at 1.6114 (R2) and 1.6137 (R3). Downwards scenario: On the other hand, our bearish expectations remain intact below the key support level at 1.6055 (S1). Price penetration below it would allow further declines towards to lower targets at 1.6031 (S2) and 1.6006 (S3).

Resistance Levels: 1.6090, 1.6114, 1.6137
Support Levels: 1.6055, 1.6031, 1.6006

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USDJPY
HIGH 99.11 LOW 98.269 BID 98.893 ASK 98.896 CHANGE 0.47% TIME 08 : 47:52



OUTLOOK SUMMARY : Up
TREND CONDITION : Upward penetration
TRADERS SENTIMENT : Bullish
IMPLIED VOLATILITY : Medium

Upwards scenario: Market remains relatively stable above the moving averages. Clearance of next resistance level at 99.11 (R1) might initiates bullish pressure and expose our intraday targets at 99.26 (R2) and 99.42 (R3) later on today. Downwards scenario: Clearance of our support at 98.68 (S1) is required to determine negative intraday bias and enable lower target at 98.51 (S2) and then any further market depreciation would suggest final aim at 98.34 (S3).

Resistance Levels: 99.11, 99.26, 99.42
Support Levels: 98.68, 98.51, 98.34

Source: FX Central Clearing Ltd,( )