After unsuccessful break of 1.2630 area EUR reversed back to 1.25 and is currently trading @ 1.2530-40. If you take a closer look on H4 you can see EUR has made 3 similar wave forms and if we follow this pattern another sharp rise follows early tomorrow. In fact 1.2500-1.2520 area is a good support zone, but if broken i do not expect to fall below 1.2470 today. Most possible scenario for today is trading within a very narrow range between1.2500 - 1.2550 and waiting for tomorrow's speech of mr.Draghi. Several times he himself and other ECB members have signaled what will ECB do to help EU countries and tomorrow maybe the news will be announced, this will support the EUR so it will be the confirmation ot the pattern of which i've told you in the beginning. Resistances are 1.2630 , 1.2680, 1.2730 where i expect EUR will stop,and then will be back 40-50 pips, and this will be for the week. Another week another rise, as Bernarke is very possible to announce QE3, EUR has enough space and power to reach 1.30 despite many analyst's forecasts which have said EUR will go to 1.1600. This may happen, but not in September, maybe later October or November. For now all are bullish neglecting all the negative EU news and paying attention only to the positive. We shall wait for the baloon to explode, i do not know if we are going to 1.30, but to reach 1.2850 before a new leg down starts.
GOLD consolidates just below 1700 and waits for some fear on the market to jump to 1730. Buy above 1680-82 for above 1700 with 10 USD SL.
LONG EUR above 1.2470 SL 1.2430 TP 1.2710 \pending\
LONG GOLD above 1680 TP above 1700 SL 1670 \pending\
Any comments and questions are welcomed, thanks for liking my forecasts!