After several attempts to break 1.2880 USD finally gave up and weakened against the EUR. EU currency has made a nearly 100 pips rally on a background of rising unemployment in Germany and more bad than good EU data. It was a little bit surprising, and at the same time it was expected because it's too early to enter the big positive Ichimoku. So it bounced and now 1.2880 is far below EUR currently trades around 1.2960 ready to make another leg higher. Weekly close above 1.2960 will accelerate the EUR rally to 1.3250-1.3350 area. NOW we are at the border zone between downside and upside, today also is the month end, so moves are possible in both directions. Of course there is a possibility for another test of 1.2900 relaxing zone, but i think that possibility is smaller than the possibility of continuing to the upside.
Another large amount of important economic data will flow soon the market, but all the investors are encouraged with the bad data from Spain which is highly pressed against the wall to ask for help - and from there ECB to start bond buying, which for now is just a promise - noone has ever seen or tasted it.
GOLD consolidates again in very narrow range,as i'm always saying usually such consolidations end up higher so i expect GOLD to move higher in the next several days.
Finally let me remind you that at the month end and beginning of another month there is a high volatility and moves in both directions, please be careful and place stops. Usually i'm placing stops 30-40 pips from entry point.if it goes over 40 pips against you - just exit the market.
LONG EUR above 1.2940 SL 1.2900, TP 1.3030-50 (it's possibe to hit the stop on a higher volatility)
LONG EUR above 1.2880 SL1.2850 TP 1.2880-1.3030
SHORT EUR below 1.2840 SL 1.2880 TP 1.2700 and below
on GOLD you may try:
LONG GOLD above 1709 SL 1705 TP 1725-30, then take profit and run - consolidation is not over
SHORT below 1700 SL 1707 TP 1685-80
Please decide on you own where to enter and exit - i cannot give personal advices about entry and exit points for your own money, my forecast is for information purposes only and to guide your analysys. Always remember that my forecast may be wrong too :) but i'm doing all my best for it to be correct.
Any comments and questions are welcomed, good luck!