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Forex Technical Analysis

Dollar strengthening across the board this morning as stocks tumble along with the commodities as fears still surrounding the 6 month rally in equities have outpaced the earnings of the companies within them.  The UK had very good data out earlier today reference house prices from Rightmove, although have not halted the flow southwards.  With the Fed's interest decision on Wednesday being the influencing factor for the weeks trading, don't expect much in the way of economic data moving the general direction of the greenback as it is likely that the QE measures implemented by the Fed to ease the recessionary pressures have seemed to have done their job, and should they end will only be bullish for the dollar.  The added weight for the dollar came from the IMF stating that it intends to sell off an eighth of its gold reserves on Friday.  With gold selling off, stocks being overbought and the Yen strengthening without retracing, expect the continuation of dollar strength, certainly after Wednesday. 
Cable for today coming off the highs of 1.6265 during Asian trading as key Asian markets are closed over the coming days.  With gold and stocks declining, the risks are being heavily sold off as we near the FED's rate decision, more importantly their comments reference QE coming to an end.  Gold selling off also adding weight to the depreciation of cable, along with the cross from the Euro.  Support at the lows for today at 1.6140, which if breaks and holds, could see a return back to 1.6110/20 (September lows) and the 3 month lows of 1.5995/00 over the coming sessions.  Resistance at 1.6190 ahead of the 1.6240 and 1.6260 (23.6% fib ret level for the weeks trading).  Expect an element of retracement into the US session before the push southwards once again hitting the pound. 
Euro still trading within its 100/20 point range (1.4760 - 1.4640/60), albeit looking to trace the cable sell off as the stocks and gold sell off.  The Euro though has not only strengthened heavily against the pound, but also the Yen, indicating once again that the Japanese currency has certainly been overbought.  Support at 1.4640 (third attempt and 50% fib ret level for the weeks trading), should it break and hold, a move towards 1.4615 expect a move towards 1.4570.  Resistance at 1.4675 ahead of 1.4710.
Yen falling of its perch somewhat in recent trading sessions, lower against the Euro, Dollar, Swiss and even the Pound during today's trading.  The FED's meeting and the ending of QE the influencing factor to that fall.  Resistance now at 93.05/10 (3 month 38.2% fib level), support at 91.95 ahead of 91.60.
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