EurO tO CoMe UndeR PresSurE – SelL GoLD - Apr 19

Since last week, news from Europe and Spain continues to dominate the world financial market.  This week we saw successful biding of Spain’s short term bond, but today’s 10-year auction would further indicate investor’s confidence level in Spanish economy.

Spain’s latest doubtful bank loan figures added more to country’s economic gloom, since February’s number suggest that the ratio of bad loans jumped to 18-years high to Euro 143.8 billion to 8.15 pct of the total credit versus from 7.91 pct in January.

I am not sure how many of you took note of my yesterday’s post, I had highlighted that UK’s MPC meeting minutes could be the main driver behind Pound Sterling’s move, which roar passed the 1.60 figure.  

Helped by better employment data, Pound got further boost when dovish Adam Posen did not demand for an increase in the size of QE, which is currently GBP 325 billion.

Today’s US Economic data could give last push to Euro to slide below 1.30 levels, as market should be nervous after French Socialist challenger Hollande’s statement that he will protect sovereignty and re-negotiate German led fiscal pact. Survey suggests that the Socialist challenger is constantly leading by over 7 pct. Spain’s 10-year bond auction will be today’s trend setter. One thing is for sure that there is plenty in Europe to worry about.

 

Gold @ $ 1641 = Selling strategy to continue around $ 1642-44, as Gold should stay below $ 1649 for $ 1633-35 levels as my new target is $ 1626. However, only break of $ 1652 could delay the down move

 

Euro @= 1.3122= Sell Euro around 1.3135-40, a break of 1.3080 is required for a test of 1.3040. A break of this level would pave way for 1.2950. However, only break above 1.3180 could risk for minor gain.

 

GBP @ = 1.6032= There is a minor risk that break of 1.6045 could push Cable towards 1.6070. However, once 1.5975 surrenders Pound would ease and should test 1.5840.

 

DuLL TradinG DaY AheaD – SeLL GolD oN RisE - ApR 18

http://www.forexstreet.net/profiles/blogs/dull-trading-day-sell-gol...

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Comment by Ziad on April 19, 2012 at 8:47am
Mr risvi am pretty much concerned my stop @ 49. Shall I keep it?
Comment by Vinod Perkash on April 19, 2012 at 8:48am

sir is the auction result good for euro or bad?

Comment by Vinod Perkash on April 19, 2012 at 8:49am

i mean the results of auction?

Comment by asad rizvi on April 19, 2012 at 8:56am

Mr.Ziad, you can sell and remit me the profit. Lot of traders promised me but everyone is MUM...GL

Comment by asad rizvi on April 19, 2012 at 8:58am

Vinod, you can still offload your position and remit me the profit ;-)

Comment by Vinod Perkash on April 19, 2012 at 9:00am

sure sir :) but sir how to interpret this auction can u plz tell me? higher yield is better or bad for euro?

Comment by asad rizvi on April 19, 2012 at 9:04am

Vinod, auction is successful, but not cure to the European problem, which is trillions. will $ 5 bilion succesful make big impact? They have managed to clear one small hurdle. Basically trading is based on such information. Such up moves provides good opportuinity, sometimes it hapen that we get caught wrong footed...Cheers 

Comment by Vinod Perkash on April 19, 2012 at 9:06am

got it sir ..thanks alot .. salute to you:)

Comment by asad rizvi on April 19, 2012 at 10:51am

Mr.Ziad, now you are sitting in the money after selling your gold @ $ 1644. Today everyone following my blog is having party time...Chers I will be away for meeting...CUL  

Comment by Mohamad on April 19, 2012 at 12:01pm

Another glorious day Mr. Rizvi .. I just joined unfortunetly i slept for 20 hours :)

I'm glad you started your project " Fun de mental " I think it would be a great name ;)

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