EUR rally continues well supported by mr.Draghi's speech at Davos, and the promise that european banks will pay back the money given to them as a financial help. Everything in Europe turns good with a promise only. This is the unique characteristic of the eurozone - if anything goes wrong, tell the markets it will be alright and all are going to believe you, and european leaders are similar to Gods. Over the Atlantic things are not good, but there are signs of stabilizing the house market and unemployment. Last Friday one member has asked for an explanation why the EUR rally continues - here it is:
1.Draghi keeps saying everything in the EU will be soon alright and even he expects a grouth this year
2.ECB doesn't seem to cut the rate in February
3.Banks promised to pay back some money
4.No strikes in Greece or problems with other EU country
5.Unlimited stimulus program in USA
All these increase the risk interest at the markets and noone needs shelters like USD and GOLD. So EUR rally will continue untill one of the above goes wrong. The main target is MA200 @ 1.3520. I think it won't be so easy broken but at first attempt we may do a little spike above it. On Weekly you may clearly see the double top formation with the mid February 2012. Let's see what will happen next month. Strong support now at 1.3170-50.
GOLD as expected fell down, indicators are negative and to turn positive we need a daily close above 1690 and i do not see this to happen soon. Sell below 1670.
LONG EUR above 1.3460 SL 1.3445 TP 1.3500-20-40
SHORT EUR below 1.3520 SL 1.3540 TP 1.3450-1.3350-1.3250-1.3170
SHORT EUR below 1.3430 SL 1.3450 TP 1.3350-1.3250-1.3170
SHORT GOLD below 1670 SL 1677 TP 1647-1627 and below
LONG GOLD above 1692 SL 1687 TP 1700 and above