11 Oct 2007

1. There were already hints and rumors that Fed is again going to cut rate. Bernanke will speak this Friday.

The European govts have met, talking about the strength in Euro against the dollars - a sign of weakening it.

Today at Singapore time 2230hrs, US is going to announce Trade Balance and Unemployment Claims.

2. The US market has been rallying with yesterday, taking some profits. It points in general a good indication of a strong fundamental in the US economics, despite the credit woes that has attract too much media attention.

In addition, the Euro market close mix, with FSTE up 17 points.

3. Major currency climb high against the dollar yesterday, however, the strength was short live by the time the US market opens.

4. GBP break the 2.0450 resistance yesterday and threathen 2.0500. It tested 2.0500, but make a reverse during US market.

Using the daily chart, CCI indicator is mixed, a sign of GBP moving in a unsure direction. It seem to be making up towards the BB(14, 0.3) mark. A sure sign of rebound is when it clear the BB median line.

Using the 1 hour chart, a strong support line is build up at 2.0380. Should WMA5 and EMA21 clear pass that support, which is make up of both EMA100 and EMA200, a good breakout south will occur. However, GBP may rebound at the support line and try again to pass 2.0500.