Counter-trend at closing...

Market Call Outlook through Oct.23

As we have expected prior to this report and towards the end of our video support that a counter-trend and price correction would be made for the Euro including the EURGBP and EURJPY cross rates.

And due to the latest release on U.S. home resales declining last September near a 2 year high, a contrary limited supply of houses up for sale drove market prices higher which provided an increase in home equity with very low mortgage rates.Thus making a stronger USD recovery working @79.61 near its daily high.

This has indicated that a stronger support @78.50/80 levels would remain while price continue to move forward to a higher level for the coming trading week. Which we made mention in in our market view analysis dated the 15th of October, 2012.

With mixed expectations from the European summit meeting which failed to provide some encouraging move; the Euro-single currency have given back some of its gains alongside with the Sterling Pound at the 1.6000 and 1.3024 respectively, as of this writing. With only a few hours of trading at the end of this week, the counter-trend would spill over for next week as the USDx recovery would now be in the making. We do remain positive for USD rally towards the middle of the last quarter of the year.

Meanwhile, the EURGBP cross remains resilient from the declining Euro but well supported by the GBPUSD as it corrects and establishes its daily lows within the US trading sessions today. Expect some lower extensions for the first two trading days for next week alongside with a USD index recovery. And the EURJPY would hold its price levels as a continuation of the USDJPY would take the lead by then. Increase volume and market activity for Asian traders to move USDJPY higher in both the European and Asian trading sessions by the coming mid-week.