EUR

October 19, 2010 05:40 ET:

EURO FUN IS OVER FOR NOW

Consolidation is ahead of us (See charthttp://chart.ly/ yag8wlm ) for a few weeks. The pair may have broken below its Sep 10 trendline support under $1.40, but that is not the 1st time we see 1 false break, which was the case in the 2nd half of August. Buba's WEBER will hit the wires at 14:00 GMT (Same time as Dovish Dudley), so watch out for more hawkish comments from the man whos widely tipped to succeed Trichet at the ECBs helm, only he doesnt care much for sounding diplomatic or being the only dissenter to continued bond purchases. Mixed ZEW survey may have helped EURUSD regain $1.3920s, I dont see much beyond $1.40, while more attention should be paid at the $1.3780s support. FED's DOVES WILL HIT THE WIRES; FRBNYs Dudley at 14:00 GMT (same as Weber) & nonvoters Lockhart, Fisher & Kocherlakota also speaking. LINK TO MY 2-HOUR SEMINAR IN BARCELONA TODAY at 18:30http://bit.ly/ 9IEfZ6


Ashraf