Table of Contents: FOREX BROTHERHOOD DAILY HOT REPORTS

© 2008, Jason Alan Jankovsky, Core Financial Group, Inc., forexbrotherhood.com

COMMENTS 1

GBP / USD 2 Date: Tuesday, October 07, 2008 7:15 AM CDT (-5 GMT)
EURO / USD 3
USD / JPY 4
Overnight Asia/Europe
USD / CHF 5 • USD two-way in technical trade
USD / CAD 6 • Russians selling EURO
• RBA cuts rates
News and
Events 7 Today’s Economic Reports
All times EASTERN (-4 GMT)

Announcements:
• 11:00am USD FOMC Member Stern Speaks
Coming Soon!! • 1:15pm USD Fed Chairman Bernanke Speaks
RSS feeds for up-to- • 2:00pm USD FOMC Meeting Minutes
the-minute market • 3:00pm USD Consumer Credit m/m
news and trades
direct to your
desktop!

Personal Looking Ahead to Wednesday

Appearance! All times EASTERN (-4 GMT)

Coming soon! • 7:45am USD FOMC Member Plosser Speaks

• 10:00am USD Pending Home Sales m/m
• 10:35am USD Crude Oil Inventories

USD mixed, two-way trade, RBA cuts rates

Continued on Page 7

The USD is mixed this
morning as the continuing
risk aversion from the
financial crisis pervades
trading. Overnight a
surprise move by the
RBA, cutting interest rates
1.0%. Traders were
Jason’s Latest Book expecting a rate cut but
“Trading Rules that Work” not one that large; the
an Amazon Top 100 USD rallied against the
under futures
Aussie but has fallen back
Get Your Copy to open New York. Large
ranges and technical trade
dominated overnight as
focus continues to be on
what will happen to the
banking sector near-term;
traders note close in stops
in most pairs as well as
semi-official names buying
USD. Russian offers for
EURO were seen
overnight Europe to
support the Ruble and
traders note that size was
seen in EURO as well.
Across the board the USD
is holding current gains
although off the recent
highs. Some analysts are
suggesting the USD is
overbought near-term but
sentiment continues to be
bullish as the financial
crisis continues. Finance
ministers are meeting in
Luxemburg today to
discuss the potential for a
coordinated change in
regulation, interest rates,
and banking liquidity
although the central banks
make the final call on
rates; many traders are

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 GBP / USD

© 2008 Genesis Financial Technologies, all rights reserved, used with permission.

GBP/USD Daily Other Things to Watch/Open Trades/News

Resistance 3: 1.8180 BUY GBP/USD Daily 1.7380 OB Stops @ 1.7280

Resistance 2: 1.8050
Resistance 1: 1.7880 Rate drops through several layers of support; at the buy
point now.
Latest New York: 1.7493
Support 1: 1.7340
Support 2: 1.7280
Support 3: 1.7200

Comments

Rate is two-way on the way down to trade under support around the 1.7300 area; volumes
better and traders note large names on the bid possibly covering shorts. Rate is likely
heavily over-sold. Follow-on selling likely to attract short-covering on further weakness.
Follow-on selling likely from technical’s and spillover from EURO. Aggressive traders can
buy this dip around the 1.7380 area; look for a recovery back to the 1.8000 handle near term.
Two-way action likely near-term; heavy focus on bailout plan. Possible sovereign interest on
the dip as semi-officials seen on dips in both EURO and GBP recently. Some stops triggered
along with active selling; traders note profit-taking bids. Major support has held for two
weeks now, any weakness likely to be bought hard. OK to buy any time in my view.

Data due Wednesday: All times EASTERN (-4 GMT)

Tentative GBP Halifax HPI m/m

5:30am GBP BRC Shop Price Index y/y
10:30am GBP CB Leading Index m/m

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 EURO / USD

© 2008 Genesis Financial Technologies, all rights reserved, used with permission.

EURO/USD Daily Other Things to Watch/Open Trades/News

Resistance 3: 1.3900/10 Currently flat.

Resistance 2: 1.3880
This dip under the 1.4300 handle is the buy zone in my
Resistance 1: 1.3800/10
view; OK to look for a buy point the next few days.
Latest New York: 1.3614
Support 1: 1.3440
Support 2: 1.3400
Support 3: 1.3380
Comments

Rate has inside range day; OK to look at the buy side on weakness to the bottom of the
range. Pullback to the 1.3400 handle on lighter volume. Rate is an absolute screaming buy in
my view. Aggressive traders can buy anytime under the 1.3900 handle in my view. Traders
note stops triggered on the way down along with technical selling. Oil weaker helps pressure
also. Traders note stops building above the market but those likely remain out of range
today. Expect more two-way action with upside bias; traders note the rate is finding profit-
taking bids on dips so far despite the uncertainty in the market. Traders suggesting that the
rate is continuing to trade technically. A bottom is due soon but the question is where.

Data due Wednesday: All times EASTERN (-4 GMT)

2:45am EUR French Government Budget Balance

2:45am EUR French Trade Balance
6:00am EUR German Industrial Production m/m

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 USD / JPY

© 2008 Genesis Financial Technologies, all rights reserved, used with permission.

USD/JPY Daily Other Things to Watch/Open Trades/News

Resistance 3: 106.00/20
Resistance 2: 105.50 10-01-08 SELL USD/JPY 106.20 OB Stops @ 107.20
Resistance 1: 105.00/10 10-07-08 LIQUIDATE UNDER 102.20
Latest New York: 102.17 BOJ holds rates steady as expected.
Support 1: 100.20/30
Support 2: .9960
Support 3: .9900
Comments

Rate remains under pressure; stops building under the 104.40 area cleared overnight. OK to
sell more on a bounce to that area but I want to take gains first. Upside resistance is huge at
this level; rate remains two-way with upside capped and support at 103.50 likely to be
resistance now on a rally. Resistance is huge above the 106.50 area as rate falls back after
attempting a high; fallback after TARP passes suggests more weakness near-term. Traders
note stops and active selling on the way to the lows; bids were only profit takers on the way
down. Cross-spreading likely to pressure USD. Upside resistance remains formidable. Equities
continue to help or hinder depending on the day; weak rally is a selling opp in my view.

Data due Wednesday: All times EASTERN (-4 GMT)

1:00am JPY BOJ Monthly Report

1:00am JPY Economy Watchers Sentiment
7:50pm JPY Core Machinery Orders m/m

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USD / CHF

© 2008 Genesis Financial Technologies, all rights reserved, used with permission.

USD/CHF Daily Other Things to Watch/Open Trades/News

Resistance 3: 1.1550 10-07-08 SELL USD/CHF 1.1420 OB Stops @ 1.1520

Resistance 2: 1.1520
Resistance 1: 1.1480
Additional strength to the 1.1450 area a potential sell.
Latest New York: 1.1413
Support 1: 1.1280
Support 2: 1.1200
Support 3: 1.1150/60

Comments

Rate makes one more try for highs and possibly building for a reversal; expect a sell signal
from the toolbox soon. Former resistance at 1.1080 area will likely act as support on a
retracement so expect more two-way action. Traders note lower volume. Aggressive traders
can sell rallies anytime in my view. Failure at the highs now challenged and low-volume rally
now may be the new top. Pullbacks have been sold heavily so expect a secure top this time.
Longs will roll stops higher. Late longs likely to have stops rolled up in-range and whipsaw
possible. If Rate falls back under the 1.1080 area after 1.1400 handle fails on this volatility
suggests rate has a lot more downside potential developing; need a sharp break back to
again feel for the top.

Data due Wednesday: All times EASTERN (-4 GMT)

NONE

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USD / CAD

© 2008 Genesis Financial Technologies, all rights reserved, used with permission.

USD/CAD Daily Other Things to Watch/Open Trades/News

Resistance 3: 1.1180
Resistance 2: 1.1140/50 Currently flat—looking to sell a rally.
Resistance 1: 1.1090
Latest New York: 1.1021
Support 1: 1.0800/10 1.0900 negates potential top; more selling and a
reversal pattern needed to feel for a top.
Support 2: 1.0750
Support 3: 1.0700

Comments

Rate scores the 1.0900 handle and first top is now negated. Possible whipsaw may trigger
stops rolled-up by longs but aggressive selling needed to find a new top. Likely to rotate
lower if the USD whipsaws because this rate is likely only following along for the ride and
not fundamentally a strong rate. Former resistance at 1.0550 area will act as support so
expect stops under the 1.0550 area on the way down. The longs likely to quit on a weekly
close under 1.0400 I think; until then expect a lot of two-way action and the top to be some
work to find. Stops likely under the 1.0700 area today but out of range so far. Rally has
spooked a lot of shorts no doubt. Upside likely to stall at weekly resistance around the
1.1200 area; expect a reversal on that rally if we get it.

Data due Wednesday: All times EASTERN (-4 GMT)

8:15am CAD Housing Starts

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USD Mixed, cont.
expecting a coordinated
rate cut between the Fed,
ECB and BOE relatively
soon but analysts are
divided on the scope of
the move. As traders
debate the near-term
implications of such action
the Majors overnight
remained range-bound for
the most part awaiting
additional news. GBP
made a brief low at 1.7316
before recovering sharply
to make a hook reversal
from the toolbox. Traders
note solid big-name bids
off the lows suggesting
the rate may be
bottoming. EURO rallied
as well with a high print
1.3624 before falling back;
traders note in both pairs
technical trade dominates
with stops in-range at
previous
support/resistance levels.
USD/JPY had a large
inside range day as well
rallying as high at 103.30
before dropping back
toward lows seen in Asia
at 101.26; no doubt
volatility due to the
surprise rate-cut by the
RBA. Traders note that
Yen remains the strongest
currency on the board and
expect more downside
…continued from page 1
from USD/JPY. Other
pairs are firm but off their
highs from yesterday;
aggressive traders are
near a sell in the USD in
my view. Look for the
Majors to continue in two-
way trade today as
fundamental news likely to
be ignored.

Today’s Quote:
“Listening to both sides of a story will convince you that there is more to a story
than both sides.”
Frank Tyger

Trading is not really about flow is the only thing that order flow to the market. where that is as far as
“bullish” or “bearish” as far matters. The net order flow price potential is
as the market is becomes the actual traded concerned; you are now
concerned. By listening to the bullish prices. learning the whole story.
argument and the bearish
It’s about knowing how argument; you open your In order to understand The whole story is not bull
likely it might be for the thinking to see a broader how best to trade the or bear—but rather net
order flow to change and picture which is the market it is good to know action.
in which direction. location of the order flow. where the net order flow
might come in at. Once Be focused on the net
That change in the order Both bulls and bears add you have a clear idea order flow.

October 2008 Performance: (closed trades only)

News & Upcoming Events:
In Date L/S Pair Price Exit Date Price P/L Net
Webinar “Introduction to the Pro-Traders Toolbox” with Genesis 10-01 L EUR/USD 1.4020 10-02 1.3920 -100 -100
th 10-01 S USD/CHF 1.1200 10-02 1.1300 -100 -200
FT on Thursday July 24 was recorded:
10-02 L GBP/USD 1.7660 10-02 1.7560 -100 -300
Please see the archives for the link. 10-01 S USD/JPY 106.20 10-07 102.20 +400 +100

Educational broadcasts and Introduction to the

Psychology of Trading recorded; files posted to the
archives page.

http://www.forexbrotherhood.com/

Trading off-exchange Cash Foreign Currency transactions (FOREX) involves substantial risk of loss and may not be
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knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and
recommendations are subject to change at any time. The information contained in this newsletter does not constitute a
solicitation to buy or sell FOREX by Jason Alan Jankovsky, Core Financial Group, INC., and/or its affiliates; and is not to
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