The Advisor Weblog

Posted: 28 Sep 2011 03:18 AM PDT

Still present, optimism fades this Wednesday, with markets eyes on Finland and Germany, where the EFSF's changes will be submitted to parliament today. I won't be expecting anything different than an approval, after recent comments from EU authorities. However, I can't stop thinking that at the end, more bond buying and a larger fund is no different from US QE.

Past Tuesday movements so far, seem to have been just corrective in the midterm at least; there has been not much follow trough over Asian session nor current one, yet a clear break of yesterday's highs, may trigger more dollar slides today. Looking at the market, I also found quite interesting the fact that Aussie retreated over 100 pips from parity yesterday. Selling interest there supports the idea of more midterm dollar gains. Anyway of course, I could be wrong.

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

EUR/USD:

Bias: Bullish – The 1.3540/50 area limited the downside pretty well, while the pair is above a daily descendant trend line coming from 1.4281, Sept 6th high. As long as above 1.3620 chances are of further gains today.

Supports: 1.3620 1.3580 1.3545

Resistances: 1.3680 1.3710 1.3740

GBP/USD:

Bias: Slightly Bullish – Short term daily ascendant trend line holds the downside around 1.5590. If below, daily bias will likely turn bearish.

Supports: 1.5590 1.5550 1.5510

Resistances: 1.5660 1.5710 1.5750

USD/CHF:

Bias: Neutral – Yesterday's bearish move will likely remain limited. More slides may come below

0.8870, not seen yet.

Supports: 0.8930 0.8870 0.8840

Resistances: 0.9000 0.9045 0.9100

USD/JPY: