Philip Salter
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AFTER a month long rally against the dollar, the euro wiped out almost half the gains falling 440 pips in one day, with the news of a Greek referendum and the European Central Bank’s consideration in cutting rates looming large. The euro-dollar pair is in freefall and will take a strong bit of positive news for the pair to bounce back any time soon. Capital Spreads quotes $1.3685-$1.3586.

The risk aversion so far this week has seen a mass sell off in the riskier currencies. The Aussie dollar has retraced from almost touching $1.0800 back to $1.0300. Since breaching the 23.6 per cent Fibonacci retracement level, the pair could go lower to the 38.2 per cent level, which is at $1.0235. Capital Spreads quotes a price of $1.0300-$1.0301 for Australian dollar-dollar.

The market has been testing the Bank of Japan’s resolve since their dramatic intervention in the small hours of Monday morning. $78 is the battle ground for now, but there seems to be strong resistance once it heads towards $79. Look to sell on approaches to $79 and look to buy back again around $78, or below, should the market pressure buckle the Bank of Japan. Spread Co offers a spread on dollar-yen of ¥78.179-¥78.199.

The euro plummeted yesterday on news that Greece was to hold a referendum on the latest euro debt bailout proposal. Euro-dollar dropped by around 500 points. Euro-sterling wasn’t quite as dramatic, falling around 200 points, before recovering to rise back above £0.8600. Spread betters were buying with limit orders set at £0.8700 and stops at £0.8550. Spreadex quotes £0.8606-£0.8609.

It was a ghoulish Halloween for cable as it whipsawed between $1.6130 to $1.5965, back to $1.6160 and back down to $1.6065, all in the space of 24 hours. Despite stronger than expected UK GDP figures on Tuesday, cable plunged to test the $1.590 support area, a break which opens a run at $1.570. Spread Co offer a spread on sterling-dollar of $1.5908-$1.5910.