Newsletter 23/10/2007

A) CALENDAR

-No Press Releases

B) SUPPORT-RESISTANCE
EURO/USD USD/JPY GBP/USD
R3 1.4310 115.45 2.0430
R2 1.4255 115.00 2.0395
R1 1.4215 114.60 2.0375
S1 1.4150 114.10 2.0290
S2 1.4125 113.65 2.0260
S3 1.4085 113.25 2.0210

C) WATCH
-Interest Rates

D) TRADING TIPS
The maximum retracement parameter is 66% which becomes an especially critical area. If the prior trend is to be maintained, the correction must stop at the two-thirds point. This then becomes a relatively low risk buying area in an uptrend or selling area in a downtrend. If prices move beyond the two-thirds point, the odds then favor a trend reversal rather than just a retracement. The move usually then retraces the entire 100% of the prior trend.

EUROPEAN SESSION

A) CALENDAR

-GMT 09:00 EU Industrial orders (m/m), (Aug) EST 0.9% PREVIOUS -4.0%
-GMT 09:00 EU Industrial orders (y/y), (Aug) EST 6.0% PREVIOUS 10.9%

B) SUPPORT-RESISTANCE
EURO/USD USD/JPY GBP/USD
R3 1.4310 115.45 2.0430
R2 1.4255 115.00 2.0395
R1 1.4215 114.80 2.0375
S1 1.4150 114.10 2.0305
S2 1.4125 113.65 2.0285
S3 1.4085 113.25 2.0260

C) WATCH
-Interest Rates

D) TRADING TIPS
The maximum retracement parameter is 66% which becomes an especially critical area. If the prior trend is to be maintained, the correction must stop at the two-thirds point. This then becomes a relatively low risk buying area in an uptrend or selling area in a downtrend. If prices move beyond the two-thirds point, the odds then favor a trend reversal rather than just a retracement. The move usually then retraces the entire 100% of the prior trend.

US SESSION

A) CALENDAR

-No Press Releases

B) SUPPORT-RESISTANCE
EURO/USD USD/JPY GBP/USD
R3 1.4310 115.45 2.0530
R2 1.4255 115.00 2.0490
R1 1.4215 114.80 2.0450
S1 1.4175 114.10 2.0395
S2 1.4145 113.65 2.0375
S3 1.4125 113.25 2.0325

C) WATCH
-Interest Rates

D) TRADING TIPS
The maximum retracement parameter is 66% which becomes an especially critical area. If the prior trend is to be maintained, the correction must stop at the two-thirds point. This then becomes a relatively low risk buying area in an uptrend or selling area in a downtrend. If prices move beyond the two-thirds point, the odds then favor a trend reversal rather than just a retracement. The move usually then retraces the entire 100% of the prior trend.