Euro oct 18,2012 report [1:39:22 PM] Fx: We are looking for the Euro to come lower this

afternoon.4hrly charts have turned negative, and therefore we should come under pressure.This is to be expected after the recent gains. Current levels of 1.3123 highs should contain the topside and we see this coming lower to target 1.3015.

This would be a good area to cover shorts, but do be ready to re-sell if 1.3000 breaks. We would then see further corrective pressure with 1.2965/45 the targeted area. At this point we would be looking to possibly go long of the Euro, although keeping a very tight stops below 1.2920.

So we have upside risk at 1.3140/45 which did hold us yesterday. We would be selling into strength unless a break is posted above the September highs of 1.3172.Now we have to leave our stops a little further away because everyone will have stops placed just above the 1.3172 area.so we will place stops at 1.3185. If we are stopped.we look for the Euro to continue higher with 1.3225 then 1.3240 targeted.

[1:42:26 PM] Fx: DAILY REPORT FOR CABLE [1:42:33 PM] Fx: Cable stayed buoyant throughout the session reaching 1.6180. We have experienced some weakness overnight with the 4hrly charts poised to turn bearish. Now as we still have the 60 min in oversold territory we may well see a bounce from current levels of 1.6123 back to 1.6145/50 just to ease this short term oversold scenario. Then we would expect the market to come lower and take out 1.6123 and yesterdays 1.6108 lows and come lower for 1.6065/55.

Here we would look to take profits. Re-instate further shorts below 1.6050 as a break below here will see further weakness ensue and we could travel as low as 1.5995/90 before seeing any serious buyers back in the market.

So expect small up move initially.However if we do manage to break 1.6150 we see 1.6180 which was yesterdays high coming once more. Now 1.6200 is pretty near here and a break of 1.6200 keeps the bullish hopes alive and target 1.6225/30 initially with 1.6265/75 following.

[1:45:18 PM] Fx: DAILY REPORT FOR AUSSIE [1:45:22 PM] Fx: Well 1.0430 was our measured target from the inverse H&S evident from late last week.and it almost achieve target overnight trading to 1.0400. We know as we had this stubborn level a few weeks ago that 1.0425/35 is going to prove a difficult level to break, as when it was support we bounced off it continually. 4hrly charts are converging to show a move downside, so we have to say that sellers have upside risk of 1.0435.

Look for a move lower to 1.0300 which is the previous neckline resistance, thus this becomes important support now. We would be buyers on to these lower levels and hold longs unless a

break is posted below 1.0270. If we lose 1.0270 we are back within the previous range with 10225 to 1.0210 the base

So we know where the resistance is. If we do manage to break 1.0435 then as Aussie traders know,we gravitate towards the magical 1.0500/05 area.