SPOT FX VIEWS AS OF Oct 10, 2007

Euro Spot Outlook as of Oct 10, 2007

VIEW:

Spot Euro closed higher as Dollar softened on Tuesday. Supports are now seen at 1.4030 followed by 1.3990. Resistance appears at 1.4130 a break of which could test 1.4165. RSI is neither overbought nor oversold and continues to trade in the neutral conditions. Prices closed below the 8-day ema at 1.4114 while the 21-day ema at 1.4027 seemed providing a firm support.  Averages in the MACD are above the zero line in the indicator suggesting bullishness; only a crossover below the zero line will indicate bearishness.

Euro gave away some of the ground as the market awaited minutes of the last FOMC meet. A healthy German Export and Euro zone Industrial production could provide little support to the single currency that stayed under continuous selling pressure after Friday’s US NFP release. In absence of any release from the region today, the wider move to come from stand of US Dollar.

RECOMMENDATION: As long as 1.4065 holds well, we can now expect the Euro to rally higher towards 1.4175/80 levels for the day. Fall below 1.4045 will cast doubts on this bullish view.

GBP Spot Outlook as of Oct 10,2007

VIEW:

Spot GBP closed lower on Tuesday. Supports are now seen at 2.0280 followed by 2.240.Resistance is at 2.0425 a break of which could test 2.0465. RSI is in neutral condition indicating prices are neither overbought no oversold and has ample room before touching the over bought region to suggest a rise. Prices have however closed above the 8-day ema at 2.0355 and the 21-day ema is at 2.0275 indicating bullishness. Averages in the MACD are above the zero line suggesting bullishness; only a crossover below the zero line will indicate bearishness.

In absence of any significant release, GBP followed the action in other Dollar majors. Dollar stayed relatively firma against most currencies. Today also the directive move is expected to come from wider action in the Greenback.

RECOMMENDATION: Buy on dips to 2.0355/60 s/l 2.0310 t/p 2.0530

YEN Spot Outlook as of Oct 10, 2007

VIEW:

Spot Dollar Yen closed lower owing to softness in Dollar. Supports are Seen at 116.80 followed by 116.30.Resistance is at 117.65 a break of which could test 118.00. Prices have closed above both the 8-day ema at 116.35 and the 21-day ema is at 115.84 indicating bullishness. RSI is in neutral condition indicating prices are neither overbought nor oversold. Averages in the MACD are however below the zero line in the indicator suggesting bearishness; only a crossover above the zero line will indicate bullishness.

RECOMMENDATION: Crucial support is at 116.35/40 levels, below which the picture could become weaker and resume the fall towards 115.20. Direct rise above 117.60 will be a sign of strength opening the way for 118.25 or even higher.

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