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[forex-arabia]

Massive North American power failure shows that even the best of the best can have an off day when it comes to infrastructure. Terrorism has been ruled out.



The Euro moved lower as I expected and continues to look heavy this morning. Resistance is at 1.1280 and 1.1310. Support is at the overnight lows of 1.1230- 40. The channel base of 1.1180 and the trendline at 1.1150 are converging so I am expecting these to be tested early to middle of next week.



Dlr Yen failed at the 119.70 resistance yesterday and has moved back to the support at 118.80. Below here and 118.20-40 is the target. Topside resistance is at 119.20 initially and then yesterdays highs again. The sell off in the Dlr Yen was caused by the drop in Euro Yen which this morning is testing support at 133.60-70. Through there and further losses below 133.00 are likely.



Cable again showed its lack of liquidity by reversing back from above 1.6100 yesterday. Support is at 1.6000 and then 1.5950 channel base. Resistance is at 1.6050 and 1.6100.