By Jean-Claude Braha - ACM Senior Trader Yesterdays News and Events: The Dollar fell sharply on Friday after trader talk of trouble at a large US hedge fund accelerated losses made earlier by data showing a decline in US home building in October. The 14.6% (MoM) drop in housing starts to a 9-year low of 1486k annualized in October is a clear indication that the housing market is still a long way from stabilizing. At least the NAHB housing index has begun to turn up. The euro zone??™s trade balance came out to a surplus in September from an August deficit; data showed on Friday in what economists attributed to a decline in oil prices and continued healthy growth in exports. European Union Statistics office Eurostat said the 12 countries using the euro had a trade surplus of ?‚¬ 2B in September against a revised deficit of ?‚¬ 5.4B in August. Euro zone annual growth in non-seasonally adjusted exports accelerated to 9% in September from 7% in August while import growth slowed to 9% from 10%. Analysts said that the euro zone trade data for September are encouraging and that the recent moderation in oil prices from their early-August peak clearly helped to limit imports, while exports rose by 2% after jumping 4% in August. In September, oil fell to around $62 a barrel from an August 7th peak of $77. Todays Key Issues: GB October PSNCR (Public Sector Net Cash Req) due at 9:30 GMT is expected -??6B to -??2B vs +??12.3B. CA September Wholesale Sales due at 13:30 GMT is expected -0.4% vs +0.1%. US October Leading Indicators due at 15:00 GMT is expected 0.2% vs 0.1%. US Treasury Secretary Paulson speaks on competitiveness of US capital markets in New York at 17:00 GMT. The Risk Today: EurUsd had found support on Friday at 1.2760 but the choppy price action is likely to continue to dominate near-term. A break of this support is required to suggest further weakness and expose the support levels at stay 1.2750 and therefore 1.2680 and 1.2620. The recovery on Friday has put the focus again on 1.2901 resistance where a break would expose the years high of 1.2981. The underlying trend remains up. UsdChf tested 1.2525 minor resistance but failed to jump higher at 1.2583 resistance. Friday??™s high was 1.2540 but latest news erased this advance and finished around 1.2440. The USD will need to break 1.2540 to reinstate a bullish advance. For now the sell-off has exposed the downside risk and attention turns to 1.2346 support. GbpUsd found support Friday at 1.8840 which now could trigger a fresh round of weakness. Short term resistances lies at 1.8970 (38.2% retracement of the 1.9182 to 1.8835 decline), a break would expose 1.9010 (50% retracement) and 1.9050 (61.8% retracement). USDJPY continues to consolidate, with a break of either 116.60 on the downside or 118.60 on the topside required to initiate the next strong directional move within the broader 116.06 / 119.90 range. Resistance and Support: EURUSD GBPUSD USDJPY USDCHF 1.2981 S 1.9144 K 120.00 P 1.2707 S 1.2941 T 1.9050 S 119.90 T 1.2583 S 1.2901 S 1.8970 S 118.60 S 1.2525 M 1.2830 1.8946 118.09 1.2432 1.2750 M 1.8840 M 117.25 M 1.2346 M 1.2620 S 1.8770 S 116.60 S 1.2290 S 1.2450 T 1.8601 P 116.06 T 1.2185 T S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot