Market Update - Oct 22nd '09

Yesterday's market action was a little too abrupt for our time frames and i hope you have switched to lower time frames as recommended recently.

1094 is indeed a strong resistance, only a few points away from a Fib target on the daily chart so it is a good price area for the "air hole" also mentioned in recent reports.

Having said that, on our time frames at least, we don't see the potential for a the big retracement just yet. We believe prices should drop again today to the low 1070s, but should bounce relatively soon (Check 30mins time frame or lower).

TF has been showing the way south and pulled back a little more markedly. It hit stall level just below 600 and could even reached support level on 594. Selling pressure is however not as strong as one could imagine, so yesterday's dip does not preclude a sizeable retracement here either. At least for now...

EURUSD: nothing new really. €/$ has hit a target on stall level and has the potential to go a little higher still but is certainly more hesitant now. It might have a go at it after gathering strength near range lows around 1.49

( posted 7:30 AM UK )