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
http://www.forexstreet.net/profiles/blogs/euro-gold-could-probe-top...
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Comment by asad rizvi on April 11, 2012 at 9:56am
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Good buying level because GOLD for the moment strugling to extend beyond $ 1652 & $1659 band and may hit the top around $ 1659 for one more time before easing to test the lows and then up again...GL
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Comment by Priyank Nevatia on April 11, 2012 at 10:10am -
Sir, as suggested by you EURUSD has tested 1.3150/55 ... Would you initiate a short here or would you still hold to sell.
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Priyank, Euro @ 1.3142 = Yes, the move has occured, I would prefer selling around 1.3155-60 with STOPS on break of 1.3185 for 45-50 pips.
GBP @ 1.5926 = take profit and Sell around 1.5940 with STOPS 1.5975 for 1.5895..
AUd 1.0315 = is agood sell around 1.0325 STOPS 1.0350 for 45-50 pips....GL
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Comment by Ziad on April 11, 2012 at 10:24am -
Mr. Risvi, I guess it was a botched trade, exited at 54 felt it wont make it to 63 from 53. I will await other signals from you as the day unfolds.
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Comment by sowMa on April 11, 2012 at 10:38am -
Hello Sir i don't see any good news from US today so i think Euro may move to 1.3200 levels , now its better to square all .
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Comment by Roger Pazdera on April 11, 2012 at 10:54am -
Good morning mr Asad,
I've placed a Short @1.3120 . At the current levels not comfortable , but can withstand even 1.32.
Should I keep it ? I expect a drop to 1.3113 in the US session , but I would like to hear your opinion.
Thank you
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sowMa, no news is good news ;-)
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Roger, my suggestion would be to stay away if your are not confortable. You will have some peaceful time like me....GL
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Comment by Roger Pazdera on April 11, 2012 at 11:19am
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Haha , very political answer . Thank you . I will keep the position thru the US market though,because of my overall Bearish view of this pair and the current economical situation in EU. Happy trading to all
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Comment by Vinod Perkash on April 11, 2012 at 11:35am
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sir wht abt gold shall we short here!!
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