EURUSD & EURGBP

Touble at the CL at 1.3625 with a tiny touch or kiss showing weakness. Two simple forks shown here from the two pivots in this recent directional move. At some point i suggest we will see a retracement to the line i mentioned last week form the oldest fork in the EURUSD chart. This would be 1.3850 area however fundemantals remain precarious and i am overall bearish until the 'PIGS'(Portugla,Italy,Greece, Spain) and toxic banking issues are resolved.( see below).
The Euro has suffered across the board against other currencies but against Cable it has taken a beating with a low of .8528

0938 GMT [Dow Jones] Espirito Santo downgrades Societe Generale (GLE.FR) and Credit Agricole (ACA.FR) to sell from neutral, and BNP Paribas (BNP.FR) to neutral from buy, on rising concerns over their liquidity profile, solvency and exposure to sovereign asset risk. Espirito Santo has screened the banks for their short-term liquidity profile, exposure to risky sovereign bonds and loans, and Basel III capital adequacy. "By our analysis, SocGen screens particularly poorly. It has the weakest liquidity profile and poor Basel III solvency," says the brokerage. Credit Agricole and BNP Paribas fare poorly too given their "weak liquidity profile" and "large troubled asset exposure." Espirito Santo cuts its target price for Societe Generale to EUR15.5 from EUR39.5, for Credit Agricole to EUR4.6 from EUR9.1 and for BNP Paribas to EUR28.1 from EUR69.4. Societe Generale shares are 9.7% lower at EUR15.75, Credit Agricole is down 9.7% at EUR4.88 and BNP Paribas is off 12.1% at EUR26.17. (noemie.bisserbe@dowjones.com)

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(END) Dow Jones Newswires

September 12, 2011 05:38 ET (09:38 GMT)