EUR/USD
Yesterday the things were pretty messy in the forex market. Lehman filed for Chapter 11 protection, AIG is seeking money and Washington Mutual is the next financial institution in trouble. Dow closed 504.48 pts down, which caused sell off in EUR/JPY and put EUR under pressure. EUR/USD hit 1.4322 around the NYSE close but then Fresh waves of US hedge funds/models, big Europeans, UK clearers sales in EUR, GBP, AUD, NZD – possibly as funds unwind expectations that Fed will have an emergency rate cut tonight- pressured the pair to 1.4200. Volatile moves from the last few days made the charts to look very ugly. The major levels are far away from the current price but culd be reached faster than usual. Today important data releases and events could affect the forex market – UK CPI (8:30 GMT), ZEW Index (9:00 GMT), US CPI (12:30 GMT), FOMC Rate decision (18:15 GMT). Support is @ 1.4180, 1.4085 and 1.3970. Resistance is @ 1.4320 and 1.4480.
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