IMF: Managing Director Dominique Strauss-Kahn speaking in Washington, says that the IMF now sees US losses of $1.3 trillion from the financial crisis, as opposed to $1.1 trillion.
Nov contract suggests an 80% chance of a 25bps ease
by the Oct 28 FOMC, that is up from 58% priced in on yest close. As for
an ease this month, sources say the mkt suggests a 50% probability the
Fed will ease before the weekend.
S&P 500 Cash from JPM's Mike Krauss - "Drop from 1265 probes the
1184 62% retrace, and chart support at 1191/1174. Bullish cyclical view
stays intact above 1134/1122 (Oct-May equality). Would reverse below
1100...Bulls would regain momentum above the 1236/1239 hourly
break...Target 1300-1350 into year-end.
24.09 19:41
Ahead of the NYMEX floor close, Nov contract trades at $105.76, down $0.85 on the day.
The major indices give up some gains. The S&P 500 posts a slight advance, while the Nasdaq continues to outperform.
Within the S&P 500, 332 stocks are posting a gain. Some of the
best percent gainers are homebuilders, with Lennar (LEN 14.91, +2.20)
up 17% and KB Home (KBH 20.43, +1.24) up 6%.
By percent loss, AIG (AIG 4.28, -0.72) is the worst performer. Last
night AIG signed a deal with the Federal Reserve Bank of New York for a
two-year $85 billion revolving credit facility in exchange for a
roughly 80% equity stake. There had been reports that AIG supporters
were working to find an alternative to the government bailout.
The yen weakened against the euro after the Federal Reserve agreed to
provide central banks with more cash to increase lending, encouraging
traders to purchase higher-yielding assets funded in Japan.
Japan's currency also slid, dropping against most of its major
counterparts, as Goldman Sachs Group Inc. raised $5 billion from Warren
Buffett's Berkshire Hathaway Inc. and the same amount in a stock
offering. Fed Chairman Ben S. Bernanke and Treasury Secretary Henry
Paulson are due to give more congressional testimony on a proposed $700
billion bailout.
``There's certainly a volley back and forth between taking on risk and
taking it off,'' said Jeff Gladstein, global head of foreign-exchange
trading at AIG Financial Products in Wilton, Connecticut. ``Everyone is
still trying to decipher the bailout package.''
Berkshire Hathaway, led by 78-year-old Buffett, is buying $5 billion of
Goldman perpetual preferred stock with a 10 percent dividend. Berkshire
also gets warrants to buy $5 billion of common stock at $115 a share at
any time in the next five years. Goldman also sold 40.65 million shares
of common stock at $123 apiece, the firm said in a statement.
Demand for the yen typically drops when appetite for higher-risk assets
increases, as traders pare so-called carry trades. In such
transactions, investors get funds in a country with low borrowing costs
and invest in another with higher interest rates, earning the spread
between the two. The risk is that currency-market moves can erase those
profits.
``Risk appetite is slightly better, but still very fragile,'' said Ian
Stannard, a senior currency strategist in London at BNP Paribas SA, the
most accurate currency forecaster in a 2007 Bloomberg survey.
The dollar fell against the euro earlier as the Fed arranged $30
billion in swaps lines with central banks in Norway, Sweden, Denmark
and Australia, providing easier access to the U.S. currency in a
response to demand for dollar loans.
Bernanke and Paulson said yesterday the bailout is needed to avert a recession in the world's biggest economy.
The chance of the Fed cutting its 2 percent benchmark rate by a
quarter-percentage point at its Oct. 29 policy meeting was 74 percent,
compared with 58 percent yesterday, futures contracts on the Chicago
Board of Trade showed.
The dollar fell against the euro today as the National Association of
Realtors reported that U.S. sales of existing homes declined last month
to a 4.91 million annual rate. The median forecast of 73 economists
surveyed by Bloomberg News was for a drop to a 4.94 million pace.
24.09 18:45
Nov сrude oil contract trading about flat on the day at $106.64 but had been down at $105.20 a short while ago.
The stock market fluctuates near the unchanged mark and then retreats
to a modest loss. The Nasdaq posts a slight gain thanks to relative
strength in tech stocks (+0.7%).
Crude oil prices fall to session lows, down 0.9% to $105.70 per
barrel. Commodities as a whole are up 0.2%, while the dollar is up
0.5%.
Washington Mutual (WM 3.11, -0.09) reversed early gains after having
its counterparty credit rating downgraded to CCC/C from BB-/B, citing
the increased likelihood a potential sale of WaMu will not involve the
whole company. Washington Mutual Bank had its BBB-/A-3 counterparty
credit rating reaffirmed due to the breadth of its retail franchise.
Losses extended to $1.4640 area as residual
stops provide sufficient momentum to drive euro through bids layered
under $1.4660. Further bids eyed at $1.4635, just below the $1.4641
overnight low. Euro last at $1.4662.
24.09 17:41
BERNANKE: Warns that if there is no change, there might be significant deterioration. Repeats his call that it is extraordinarily important to take action, and must do what can be done so that things don't get worse.
24.09 16:52
BERNANKE: Assures that the US economy will be fine in the medium term, but acknowledges that the TARP will make it harder to balance the budget.
Crude oil prices are lower as US weekly DoE inventory data showed crude
oil supplies fell less than expected at 1.52k barrels in the week ended
Sept 19. In addition, oil traders are also taking note of weak demand
numbers, where gasoline demand fell 3.5% vs same period last year. WTI
Nymex crude oil trades at $108.15, up $1.54.
24.09 16:28
BERNANKE: Sees tentative signs of stabilization in the housing market, and expects the bottoming out of housing construction 'soon.'
Warns that if the credit mkts worsen, then business conditions will get
worse as well. Suggests more concern about the continuing fall in house
prices. Says that the downside risk would be a larger, deeper housing
decline.
The major indices are trading in positive territory, with the Nasdaq
and S&P 500 at fresh session highs. The Nasdaq is outperforming
with a gain of roughly 1%, thanks to strength in tech stocks (+1.4%).
The energy sector (+1.4%) is providing leadership, although crude
prices (+1.1% at $107.77) have pulled off their session highs after
government data showed stockpiles fell by a smaller-than-expected
amount.
The industrial sector (-0.8%) is under selling pressure, with General
Electric (GE 24.10, +0.85) falling for the third straight session.
Says that science is
not quired to figure out how much is needed for bailout. Repeats that
$700 bln is about 5% of outstanding mortgages, and seems an appropriate
size to address the problem. Points out that the $700 bln requested is not a fiscal
stimulus and will not influence Fed rates. If the plan does help the
economy grow, he says, then the Fed may tighten sooner. Says he does
not expect the plan to accelerate inflation.
24.09 16:06
BERNANKE: Points out that Tsy purchases of MBS should lead to new lending.
The stock market opens with a slight gain as news that one of the
world's most respected investors invested in a financial company helps
to offset disappointment that credit markets remain tight.
Warren Buffett's Berkshire Hathaway (BRK.A 128,800) bought $5 billion
perpetual preferred stock yielding 10% from Goldman Sachs (GS 127.67,
+2.62). Berkshire will also receive warrants to purchase $5 billion of
GS common stock at a strike price of $115, exercisable anytime over
five years, and is already profitable for Berkshire at the current
price of GS. In addition, Goldman priced a $5.0 billion common stock
public offering at $123 per share.
The up to $700 billion plan from the Treasury to ease the credit market
turmoil will remain in focus -- Fed Chairman Bernanke testifies on
economic outlook before the Joint Economic Committee at 10:00 AM ET and
Bernanke and Treasury Secretary Paulson testify before the House
financial services at 2:30 PM ET.
Econ to grow "appreciably below potential' in this second half.
Since the second quarter, economic activity has "decelerated broadly."
And, the FOMC is monitoring developments, to "act as needed."
24.09 15:00
US: Aug existing home sales -2.2% to 4.91 mln units - vs upwardly revised 5.02
Dipping to lows for the day as euro-dollar probes the topside,
dollar-Swiss having topped out in European dealing ahead of hf1.0900
where sizeable stops are noted. Orderboard said to be light on the
downside, bids in small around Chf1.0800, with little of note then
until Chf1.0770. Stops are then noted under Monday's lows at Chf1.0700.
-- Leading indicators point to decelerating GDP momentum -- EMU inflation could be at a turning point -- EMU economic outlook unusually uncertain -- Sees "relatively weak" growth in EMU in 2009 -- Upside inflation risks, downside growth risks.
Dresdner Kleinwort says - "Existing home sales rose by a
greater-than-expected 3.1% in July to an annualized selling rate of
5.00M, the highest rate since February. Transactions picked up partly
because banks are selling foreclosed properties at what can only be
thought of as distressed prices...We estimate existing home sales fell
-1.2% (-10.2% YoY) in August to a selling rate of 4.94M."
Stock futures gained Wednesday (S&P futures vs fair value: +3.30.
Nasdaq futures vs fair value:
+3.00.), signaling a higher start for Wall Street, as investment
powerhouse Warren Buffett injected $5 billion into Goldman Sachs.
The Goldman Sachs investment from Buffett's Berkshire Hathaway firm
was announced late Tuesday, and was seen as a vote of confidence.
Also, the Federal Reserve Bank said Wednesday it struck a deal with
governments of Australia, Denmark, Norway and Sweden for $30 billion in
loans, so it can lend money to U.S. banks. Bernanke and Paulson are both expected to testify before the House Financial Services Committee.
The markets will get some more information about the housing market at
1400GMT, the National Association of Realtors releases its monthly
report on existing home sales. A consensus of economists interviewed by
Briefing.com projects an annual sales rate of 4.93 million in August,
down from 5 million the prior month.
Oil was up $2.54 a barrel to $109.15. A pre-report survey from oil
analyst Platts projects a 1.6 million barrel increase in U.S.
commercial crude oil supply when the Energy Information Administration
releases weekly data at 1435GMT.
Rate now challenge
next band of resistance at $1.4720/25. Above this area to open a move
on toward $1.4745/50, on etrader suggests. Bids remain back at $1.4625/20. more at $1.4605/95.
The yen weakened against the dollar and the euro after the Federal
Reserve agreed to provide central banks with more cash to increase
lending, encouraging traders to purchase higher-yielding assets funded
in Japan.
The yen also slid against every major currency after Goldman Sachs
Group Inc. raised $5 billion in stock from Warren Buffett's Berkshire
Hathaway Inc. The Fed arranged $30 billion in swap lines with central
banks in Norway, Sweden, Denmark and Australia, providing easier access
to the U.S. currency in a response to soaring demand for dollar loans.
``Risk appetite is slightly better, but still very fragile,'' said Ian
Stannard, a senior currency strategist in London at BNP Paribas SA, the
most accurate currency forecaster in a 2007 Bloomberg survey. ``They
are continuing to press through help packages and ultimately it's going
to be a stabilizing factor.''
``There's a case for the yen to weaken,'' said Motonari Ogawa, director
of currency trading in Tokyo at Barclays Capital Inc., a unit of the
U.K.'s third-biggest bank. ``People are focused on the stock market, so
gains in Europe and the U.S. on Goldman's capital injection could calm
nerves.''
Berkshire Hathaway, led by 78-year-old Buffett, is buying $5 billion of
Goldman perpetual preferred stock with a 10 percent dividend. Berkshire
also gets warrants to buy $5 billion of common stock at $115 a share at
any time in the next five years. Buffet's investment alleviated
concerns about firms that rely heavily on bond markets for funding.
Demand for the yen typically drops when appetite for higher-risk assets
increases, as traders pare so-called carry trades. In such
transactions, investors get funds in a country with low borrowing costs
and invest in another with higher interest rates, earning the spread
between the two. The risk is that currency-market moves can erase those
profits.
The euro was little changed versus the dollar after the Munich-based
Ifo institute's business climate index declined to 92.9 from 94.8 in
August. The median forecast of economists was for a reading of 94.3.
The report was based on a survey of 7,000 executives.
The dollar fell against the euro earlier after the Fed arranged $30
billion in swaps with central banks to ease short- term dollar funding.
The U.S. Congress may prolong debate on the government's $700 billion
proposal to remove illiquid assets from the banking system.
U.S. lawmakers have balked at rubber-stamping the Treasury's plan, with
Democrats demanding it include support for homeowners and limits on
executive pay. Republicans are also resisting the plan, which
economists predict would push the budget deficit to an all-time high
next year.
Fed Chairman Ben S. Bernanke is due to give congressional testimony on
the U.S. economy at 10 a.m. in Washington today. He and Treasury
Secretary Henry Paulson said yesterday the bailout is needed to avert a
recession in the world's biggest economy.
``The risk this afternoon is that Bernanke sounds more concerned from
the fallout from the banking crisis into the real economy,'' said Steve
Barrow, a currency strategist with Standard Bank in London. ``That
could weigh on the dollar.''
EUR/USDback above $1.4700. Offers placed around the Asian high were able to cap the rally. With
Ifo coming in better than the rumour,
euro-dollar lifted back, though the rally topped out ahead of $1.4700. Offers
$1.4710, $1.4720/25, stops above, bids $1.4625/20, $1.4605/95.
GBP/USD
Rate eased to $1.8575 into CBI data, but little reaction seen on
release/fixing.Cable bids $1.8550,
$1.8500. Offers $1.8600/10, $1.8645/55.
USD/JPYregaining the Y106 handle and advancing to the Y106.30 area where strong offers kicked in. Both pairs eased
back, though slippage in dollar-yen was contained at Y105.90, with the rate
coming back to testthe highs ahead of
the US open. Оffers
Y106.30/35, stops above, offers Y106.60, bids Y105.90.
At 1400GMT, Fed Chairman Ben Bernanke is due to testify on the US
economy to the Joint Economic Committee of Congress, in Washington. He
also speaks to the committee from 1830GMT along with Treasury Secretary
Henry Paulson. Meanwhile, at 1400GMT, US existing home sales are
expected to slow to a 4.94 million annual rate in August after rising
in July. With lending standards tight and home prices falling, buyers
remain on the fence. Supply remains very high relative to sales, which
should keep prices on a downward path. The weekly crude oil stocks data
is also due, at 1435GMT. Later Wednesday, into Thursday at 2300GMT,
Richmond Fed President Jeffrey Lacker is due to speak at a forum on
mortgage foreclosures.
Resistance 3: Y108.00
Resistance 2: Y107.20
Resistance 1: Y106.30
Current price: Y106.35
Support 1: Y106.15 Support 2: Y104.00
Support 3: Y103.50
Comments: The yen has updated a session high. Resistance is around
session high on Y106.35, then – at Monday’s high on Y107.20. Stronger
level remains at Friday’s high on Y108.00. Support is around session
low on Y105.30 (session low), around Y104.00 and then – to stronger
support at Y103.50 (trend line from Mar 17).
Resistance 3: Chf1.1050
Resistance 2: Chf1.0980
Resistance 1: Chf1.0890
Current price: Chf1.0880
Support 1: Chf1.0830 Support 2: Chf1.0690
Support 3: Chf1.0610
Comments: Tech on USD/CHF hasn't changed. The rate tests the nearest level of resistance presented by
area of session high on Chf1,0890. Overcoming of the given mark will
open road to Chf1,0980 (50 % FIBO of decrease Chf1,1280-Chf1,0690).
Above is located Chf1,050 (61,8% of decrease). In case of the decrease,
the nearest purpose becomes a session low on Chf1,0830. Further loss of
pair can grow up to Chf1,0690 (Monday's low) and Chf1,0610 (6 Aug high).
Resistance 3: $1.8900
Resistance 2: $1.8790 Resistance 1: $1.8640Current price: $1.8582Support 1: $1.8500
Support 2: $1.8470
Support 3: $1.8390 Comments: The pair has set a session high at $1.8606. Nearest
resistance is at the level of Monday's and Tuesday's highs on $1.8640.
In case of the further growth, the rate will encounter resistance on
$1.8790 (50% Fibo of decrease $2.0135 - $1.7445). Successful overcoming
of the given mark will open road to $1,8900. Nearest support is at the
level of today's low $1.8500. Below support is located at the level of
yesterday's low $1.8470 (also Fibo line, 23,6% of increase from $1.7915
to $1.8640). Further losses of the rate can increase up to $1,8390 (the
level of 19 Sep high).
Resistance 3:$1.4960
Resistance 2: $1.4870
Resistance 1: $1.4700
Current price: $1.4660
Support 1: $1.4630 Support 2: $1.4570
Support 3: $1.4500
Comments: Tech on euro hasn't changed. Intermediate support is 23,6% FIBO of growth from
$1.3880 up to $1.4865 on $1.4630. Also this level is area of a
yesterday's low. Break under will accelerate the retreat to $1,4570 (26
Auglow), below loss of a rate can will increase up to a level 38.2%FIBO
Above the specified growth on $1,4500. The nearest area of resistance
is presented by a mark $1,4700 (session high, and also 38,2% FIBO of
decrease $1.6030-$ 1.3870). Further growth is possible to support on
$1.4870 (Monday's high) and above to a level of 50% of decrease
$1.6030-$ 1.3870.
The yen declined after the Federal Reserve announced it extended
currency swap agreements and as Goldman Sachs Group Inc. said it will
raise funds, giving investors confidence to buy higher-yielding assets.
The yen dropped the most this week against the dollar and euro as U.S.
stock futures rose and Asian shares pared losses. Goldman Sachs secured
a $5 billion stock investment from Warren Buffett's Berkshire Hathaway
Inc. The Fed arranged $30 billion in swaps with central banks in
Australia, Denmark, Norway and Sweden to ease short-term dollar
funding.
The dollar fell against the euro as the U.S. Congress may prolong
debate on the government's $700 billion proposal to remove illiquid
assets from the banking system.
The chance of the Fed cutting its 2 percent benchmark rate by a
quarter-percentage point at its Oct. 29 policy meeting was 58 percent
yesterday, compared with zero a month ago, futures contracts on the
Chicago Board of Trade showed.
EUR/USD at asian session traded in range and made fluctuations between levels $1.4710 and $1.4640. GBP/USD has established a session high at a level $1.8587 then has tested a low on $1.8502. USD/JPY after decrease to Y105.33 the dollar has grown versus yen up to Y106.34 and now the tenders pass near to a session high.
US data starts at 1100GMT with the MBA Mortgage Application Index.At
1400GMT, Fed Chairman Ben Bernanke is due to testify on the US economy
to the Joint Economic Committee of Congress, in Washington. He also
speaks to the committee from 1830GMT along with Treasury Secretary
Henry Paulson. Meanwhile, at 1400GMT, US existing home sales are
expected to slow to a 4.94 million annual rate in August after rising
in July. With lending standards tight and home prices falling, buyers
remain on the fence. Supply remains very high relative to sales, which
should keep prices on a downward path. The weekly crude oil stocks data
is also due, at 1435GMT. Later Wednesday, into Thursday at 2300GMT,
Richmond Fed President Jeffrey Lacker is due to speak at a forum on
mortgage foreclosures.
Japan's benchmark stock indices ended the day mixed, as an afternoon
rally saw prices edge into positive territory late in the day. The
benchmark Nikkei 225 was higher by 24.44 points, or 0.20%, at 12115.03.
The broader-based TOPIX was just shy of the gain line, ending down a
modest 0.72 points at 1167.97.
European stocks fell for a second day as Federal Reserve Chairman
Ben S. Bernanke warned that financial markets are under ``extraordinary
stress'' and a slump in metals and oil dragged down commodities
producers. Barclays Plc, the U.K.'s third-biggest bank,
dropped 4.2 percent. Vedanta Resources Plc, India's largest zinc
producer, and Rio Tinto Group slid more than 5 percent on lower copper,
zinc and gold prices. Marks & Spencer Group Plc sank 1.9 percent
after Deutsche Bank AG cut its recommendation on shares of the U.K.'s
biggest clothing retailer. National benchmark indexes decreased in
all 18 western European markets. The U.K.'s FTSE 100 lost 1.9 percent
as British Airways Plc and Man Group Plc declined. France's CAC 40
dropped 2 percent and Germany's DAX retreated 0.6 percent. Europe's
manufacturing and service industries contracted for a fourth month in
September as the credit-market seizure intensified and companies scaled
back production in response to slowing orders. Royal Bank of Scotland
Group Plc's composite index dropped to 47 from 48.2 in August. Investors
should reduce stock holdings in developed markets because a U.S. plan
to shore up financial markets won't stop a ``nasty slowdown,''
according to HSBC Holdings Plc strategists led by Richard Cookson. Still,
the U.S. slowdown may be shorter than expected and private equity
investors should start searching for bargains after valuations tumbled
this year, said Mark Mobius, executive chairman of Templeton Asset
Management Ltd. Barclays lost 4.2 percent to 357.25 pence. Societe
Generale SA, France's third-largest bank by assets, declined 3.4
percent to 62.42 euros. British Airways, whose most lucrative market is trans- Atlantic business travel, sank 3.7 percent to 210.5 pence. Man
Group Plc decreased 8.2 percent to 398 pence after the largest publicly
traded hedge-fund manager was rated ``underperform'' in new coverage at
Jefferies, citing the ``prospect of significantly lower profits.'' STMicroelectronics
NV, Europe's biggest chipmaker, tumbled 5.1 percent to 7.61 euros as
JPMorgan, Chase & Co. cut its recommendation to ``neutral'' from
``overweight,'' and Exane BNP downgraded the stock to ``neutral'' from
``outperform.'' Escada AG sank 8.7 percent to 9.95 euros after the
German luxury women's fashion maker that appointed a new chief
executive in July said its loss may widen and third-quarter sales
slumped.
Stocks ended lower Tuesday in a volatile session that was dominated by testimony from key financial officials. The
S&P 500 settled with a loss of 1.6%, near session lows, following a
late-session surge in broad-based selling interest. All ten of the
economic sectors ended the day in negative territory. Volume was on
the light side, with only 1.2 billion shares exchanging hands on the
NYSE. Fed Chairman Bernanke, Treasury Secretary Paulson, SEC
Chairman's Cox and OFHEO director Lockhart testified on the current
financial turmoil to the Senate Banking Committee, which included
prepared remarks and a question and answer session. The majority of
focus was on Paulson and Bernanke regarding the Treasury's proposed
plan to alleviate the credit market turmoil by buying up to $700
billion in illiquid assets from financial firms. Bernanke said
urgent action from Congress is required to stabilize the situation, or
there may be "very serious consequences for our financial markets and
for our economy." The Federal Reserve supports the Treasury's proposal. There
was a substantial amount of banking committee member contention
regarding the plan, which sparked some volatility in the stock market
on concerns the size of plan may be limited, or it will take
longer-than-expected to pass. The financial sector fell 1.5%. Influential
Oppenheimer analyst Meredith Whitney cut her earnings estimates on
several financial firms, including Bank of America (BAC 33.58, -0.57),
Citigroup (C 19.52, -0.49) and Wachovia (WB 14.79, -1.81). Whitney
believes any government plan has "little hope of improving core
fundamentals over the near and medium term." The industrials sector
(-2.5%) was a laggard. General Electric (GE 24.84, -1.31) was
downgraded to Neutral from Buy at Merrill Lynch. The downgrade was
prompted by Merrill's projection that GE Commercial Finance and GE
Money will each see earnings fall 15% next year. As a result, GE's 2009
and 2010 earnings estimates were lowered at Merrill. The energy (-2.9%) and materials (-3.2%) sectors also saw steep declines as oil and other commodities went on the decline. Crude
fell 2.3% to $106.83 per barrel this session, which followed
yesterday's extremely volatile action. The Energy Information
Administration confirmed that yesterday's rally in crude for October
delivery, which saw prices spike as much as $25.45 to $130.00 per
barrel, was due to short-covering or market manipulation.
Resistance 3: Y108.00
Resistance 2: Y107.20
Resistance 1: Y106.30
Current price: Y106.20
Support 1: Y105.30 Support 2: Y104.00
Support 3: Y103.50
Comments: The yen has updated a session high. Resistance is around
session high on Y106.30, then – at Monday’s high on Y107.20. Stronger
level remains at Friday’s high on Y108.00. Support is around session
low on Y105.30 (session low), around Y104.00 and then – to stronger
support at Y103.50 (trend line from Mar 17).
Resistance 3: Chf1.1050
Resistance 2: Chf1.0980
Resistance 1: Chf1.0890
Current price: Chf1.0880
Support 1: Chf1.0830 Support 2: Chf1.0690
Support 3: Chf1.0610
Comments: The rate tests the nearest level of resistance presented by
area of session high on Chf1,0890. Overcoming of the given mark will
open road to Chf1,0980 (50 % FIBO of decrease Chf1,1280-Chf1,0690).
Above is located Chf1,050 (61,8% of decrease). In case of the decrease,
the nearest purpose becomes a session low on Chf1,0830. Further loss of
pair can grow up to Chf1,0690 (Monday's low) and Chf1,0610 (6 Aug high).
Resistance 3: $1.8900 Resistance 2: $1.8800
Resistance 1: $1.8640
Current price: $1.8537
Support 1: $1.8470 Support 2: $1.8390
Support 3: $1.8270
Comments: The pair continues to consolidated within the limits of the
yesterday's channel $1,8470-$1,8640 which borders act as intermediate
levels of support/resistance accordingly. In case of the further
growth, the rate will encounter resistance on $1,8800 (50 % FIBO of
decrease $2,0150-$ 1,7450). Successful overcoming of the given mark
will open road to $1,8900. Below $1,8470 is located the level $1,8390
(19 Sep high), further losses of a rate can will increase up to $1,8270
(area of 18 Sep high and 22 Sep low).
Resistance 3:$1.4960
Resistance 2: $1.4870
Resistance 1: $1.4700
Current price: $1.4676
Support 1: $1.4630 Support 2: $1.4570
Support 3: $1.4500
Comments: The euro has slightly receded from reached before levels
against dollar. Intermediate support is 23,6% FIBO of growth from
$1.3880 up to $1.4865 on $1.4630. Also this level is area of a
yesterday's low. Break under will accelerate the retreat to $1,4570 (26
Auglow), below loss of a rate can will increase up to a level 38.2%FIBO
Above the specified growth on $1,4500. The nearest area of resistance
is presented by a mark $1,4700 (session high, and also 38,2% FIBO of
decrease $1.6030-$ 1.3870). Further growth is possible to support on
$1.4870 (Monday's high) and above to a level of 50% of decrease
$1.6030-$ 1.3870.
