The Advisor Weblog

Posted: 27 Sep 2011 03:29 AM PDT

Optimism rules today with stocks and commodities strongly up, as latest market rumors suggest the EU is ready to widen the European bailout fund, to prevent more debt contagion. Seems the rescue plan has been discussed by G20 over the weekend. Still, market is not showing much confidence as both Euro and Pound hold near recent multi months low.

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

EUR/USD:

Bias: Neutral – Still limited below 1.3550 area. Break of the last may favor an approach to 1.3630/50 area on market positive mood. Indicators however hold the bearish path.

Supports: 1.3480 1.3440 1.3400

Resistances: 1.3520 1.3550 1.3590

GBP/USD:

Bias: Bullish – Correcting lower from the 61.8% retracement of the 1.5747/1.5330 rally. Correction may reach 1.5490 (38.2%) yet a bounce back higher should be expected there.

Supports: 1.5490 1.5460 1.5420

Resistances: 1.5560 1.5600 1.5655

USD/CHF:

Bias: Slightly bearish – Pushing towards the daily ascendant trend line coming from 0.8647 (today at 0.9010); break lower seems still unlikely.

Supports: 0.9000 0.8930 0.8870

Resistances: 0.9045 0.9100 0.9145

USD/JPY:

Bias: Neutral – Range bound, the USD/JPY needs a clear break either below 76.00 or above 77.10, to give signs of life.

Supports: 76.10 75.90 75.40

Resistances: 76.50 76.75 77.10