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Friday, November 12, 2010

FX Comments 11/12/2010

Good morning,

G20 meeting agreed to let markets define currency rates and we hopefully should be able to avoid a currency war. I hope that we can trust them this time..
Risk aversion is strongly back with equity markets sharply in the red and china stocks down on average 5.5% on the day.
EURUSD has been a one way street mainly on concerns over Ireland, JPY crosses are down on the risk aversion play..Feels to me the trend is strong (and even stronger than I thought) but difficult to trade since the corrections are violent, they kill the P&L and the nerves.

Today's resistance levels are around 1.3660-70, followed by 1.3720-30 and on the downside supports are @ 1.3570-80, 1.3510 ish for the moment.

Good luck,

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