EUR is rising and rising and doesn't want to wait even a munite longer, but is this the real situation???? The most possible thing for today is that mr.Bernarke will announce QE3 and will extend the extremely low interest rate period to 2015. These both things are already expected and well known, the market has consumed them already, as the EUR started its rising over a month ago. For today i'm expecting huge movements in both directions, i mean that EUR may go over 100 pips in less than a minute. For that time the most traders cannot react or platforms freeze, so the best thing to do is to stay away from the market in the first minutes after the release. Maybe the release will be followed by a powerful spike up above 1.3030, then a massive profit taking will take place, drawing the price to 1.2800 and there is the important moment. Will the price be able to regain losses, if not then another 200 pips drop will follow - to 1.2600, but if it was able to regain above 1.2900-30 then the target will be 1.3240-50 if not today then tomorrow.
Resistance levels are, 1.3030, 1.3110, 1.3165, 1.3240-50, Support levels are 1.2870, 1.2830, 1.2780, 1.2720, below that we are going directly to 1.2600- 1.2570 and if broken to 1.2500 but that's nearly 450 pips below, so i won't comment this right now.
In fact the announcing of QE3 must increase the EUR interest, but what we need is a correction to the nearly 40 days upside progress and we need one massive profit taking, as i'm saying massive that means over 240 pips, maybe 300 pips. Very good point for this is the psychological level 1.3000-30 or maybe a little more up. Remember that this is just my view, is't not necessary to happen like that, so you have to do decisions for your money by yourself.
I think a correction will happen and will reach 1.2600- 1.2700 from where next week will start a new wave up, this will take some 2-3 days for the traders to understand what's happening really. Somewhere @ 1.3250 a strong resistance area is waiting, a good place to start the new downside wave.
I wonder until when germans will pay everybody money which will be just eaten, and nothing more. Maybe i should ask ECB and mrs.Merkel to make a deposit to my account too, i will never return the money, but will live good, and after some time i'll ask for more time like greeks do. EUR is now one big bubble which is going to explode every single moment, be sure to catch this moment.
GOLD has made its rise attempt too early and as expected the first one was unsuccessful. For today the risk on EUR will prevail, so noone will interest in GOLD, even the price may drop for a while, GOLD will start to jump minutes before the FOMC release.
I cannot give positions for today, but to advice you to use "hit and run" strategy, and to watch the charts, not to listen to mr.Bernarke. Go with the market, not against it, the best thing is to stay away, and leave the market to choose a direction, then to enter in that direction, maybe tomorrow, as the movement will continue through the following days too.
If you have questions you may ask here.