BuY GbP oN dipS – PrefeR SellinG GoLD – ApR 11

Nervousness prevails in the market as Spain and Italy’s high bond yield continues to give jitter by reminding that the European sovereign debt remains a big unresolved issue. Bank of Spain Governor’s statement that Spanish banks need more capital weighed heavily, 10-years Spanish bond yield surged beyond 6 pct. Thursdays Italian bond auction is keeping market nervous.

Meanwhile, some of the Fed officials spoke on different occasions. They do not seem to be in favor of easing.  Kocherlakota and Fisher spoke against accommodation and QE3 respectively. Today Fed official will continue to speak.

Gold made some later hour surprise recovery despite strong US Dollar after briefly hitting $ 1632. This was probably in reaction to European uncertainty and global stock market fall. Gold also got boost from end of Indian protest.

But volatility will continue and selling at high levels should dominate because until now FED officials are very clear that they are not keen for softer monetary policy and therefore no QE3. If FED is in no mood to ease then higher gold price makes little sense. China easing is the only hope, but with signs of strong GDP numbers on Friday, China may have to delay in softening its stance.

Again, today all eyes will be focusing on Europe and bond market will provide more clues. There are couples of German data, which may give insight about Germany’s economy.   



Gold @ $ 1654.20 = Break of $ 1658-60 could push Gold towards $ 1666-68. However, I do not favor buying gold beyond $ 1665, as risk for fall will remain intact for $ 1547. Watch support level and break of $ 1642 level risk for more losses

Euro @= 1.3085 = Prefer waiting to sell around 1.3120’s as 1.3165 would be the next level to watch. Break of 1.3055 will push Euro further down to 1.3025.

GBP @ = 1.5872 = Cable has support around 1.5845-50 would watch and prefer buying with STOPS 1.5820, a convincing break of 1.5910 will help GBP to test 1.5930-35 zones.


EurO & GoLD coulD ProbE ToP B4 DowN - ApR 10

Views: 2990

Comment by kiko on April 11, 2012 at 4:38am

good luck today guys

Comment by spring on April 11, 2012 at 6:24am

GBP  is stronger than EURO & AUD

Comment by asad rizvi on April 11, 2012 at 6:27am

Yes, spring. You may have noted that today GBP is my top pick......GL

Comment by sowMa on April 11, 2012 at 6:33am

Oh ok thank you Sir i hope i do best today. And i will be waiting for your next update Sir. Today which is the big bang news make market more volatile thank you  Sir.

Comment by Husain Abbas Doriwala on April 11, 2012 at 6:33am

Mr. Rizvi, GBP luks strong to reach 1.5925.

Comment by asad rizvi on April 11, 2012 at 6:39am

Husain, almost kissed my 1st target 1.5901, break hear could see a test of my 2nd target1.5930-35...GL

Comment by asad rizvi on April 11, 2012 at 6:42am

sowma, styrategy for Euro remains unchanged, pick the top to sell. Spainish and Italian bond will provide you the clue. Keep an eye for the next move......Cheers

Comment by Gordon Gekko on April 11, 2012 at 6:45am

Mr. Asad thank you, you suggest buying up until 1660 I guess to be on the safe side and anything printing 1665 and above is preferred to be sold.

Comment by spring on April 11, 2012 at 6:56am

Perfect styrategy for GBP,sir

I am late .

Wait for next chance


Comment by spring on April 11, 2012 at 7:00am

wo ,EURO

I like it ,waiting for selling


You need to be a member of Forex Social Network to add comments!


© 2020   Created by FXStreet.   Powered by

Badges  |  Report an Issue  |  Terms of Service