EUR has made some progress yesterday following the good PMI data from EU and the bad ISM data from USA. Rally even appeared for a while when Spain requiested a banking sector bailout money. That was not the bailout request that market is expecting. These money will help only some big banks, and ECB will not start its bond buying program. I think that this fact soon may turn into a market disappointment. But for now all investors are cautious and waiting for the ECB rate decision. There is enough possibilities to do a rate cut because of the low level of inflation, but i'm not sure ECB will do this right at the end of 2012.

Currently EUR is still fighting with the resistance @ 1.3060-80, and breaking above is just a matter of time, but the progress of the EUR is due mostly to the bad fiscal situation in the USA, not to the better things in EU. European leaders still doing nothing to deal with the debt crisis.

Meanwhile GOLD made another severe drop this morning reaching 1695. Further drops will follow as GOLD has lost ground again and this time we may reach 1656, too bad but this is the reality.

For today:

LONG EUR on H4 close above 1.3060 SL 1.3035 TP1.3130-50

or LONG on a drop to 1.3015-1.3025 SL 1.2980 TP 1.3080 and above

we are in the uptrend so entering short is recommended only for the rich mental hospital patients

SHORT GOLD below 1715 SL 1720 TP 1700 and below

Good luck!

Views: 1368

Tags: EUR, GOLD, USD

Comment by abdul quader on December 4, 2012 at 9:28am

hi sir ..nice analysis .. but i think im the rich mental ur talking abt .. and im in short in this trade and will be selling this pair as it goes up ... ..a famous saying of WB " i will tell u a secret of getting rich on wall street. you try to be greedy when others are fearful.and u try to be very fearful when others are greedy "

Comment by Oasis on December 4, 2012 at 5:43pm

Nice analysis especially - "entering short is recommended only for the rich mental hospital patients". 

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