The Advisor Weblog

Posted: 26 Sep 2011 02:47 AM PDT

Markets had been shocked past week, after the FED announced a 400B new tool to reactivate their economy. Called "operation twist", FED decided to sell their short term debt, and buy up to 30 years one in order to lower long term yields.
The immediate consequence has been strong deeps in stocks and commodities that favored the dollar particularly against commodity and European currencies. Weekly opening saw gold plunging almost $ 100 which only exacerbated dollar gains, although positive tone in European stocks had reversed dollar rally.

According to the 4 hours chart, here is today's trend.

EUR/USD:
Bias: Still bearish – Key resistance is 1.3540/50 area, 20 SMA and 38.2% retracement of past week fall.

Supports: 1.3440 1.3400 1.3360

Resistances: 1.3480 1.3520 1.3550

GBP/USD:
Bias: Bullish – Gathering momentum around 1.5500. More gains once steady above 1.5520 are to be expected.

Supports: 1.5460 1.5420 1.5370

Resistances: 1.5520 1.5560 1.5600

USD/CHF:
Bias: Bullish/Neutral – Daily ascendant trend line coming from 0.8647 (today at 0.8990) should limit

Swissy attempts to rise.

Supports: 0.9060 0.9035 0.8990

Resistances: 0.9100 0.9145 0.9180

USD/JPY:
Bias: Bearish/Neutral – Chances of a break lower persist as long as below 77.00 area.