EurO & GbP,TrenD DowN TheN uP –GoLD tO SuffeR- Mar 30

US Dollar continued with its morning gain due to worsening economic condition and uncertainty in Spain. Its high borrowing cost and strike in the country further dented Euro that pushed European currency. Today’s (FRIDAY) budget could provide clearer picture that if Spain can seriously impose austerity measures to reduce its high deficit or will it succumb to the public pressure and will have to face similar situation/condition faced earlier by Greece.

Friday’s US economic data that mixed signal about US economic recovery initially gave further boost to the USD that proved to be short lived and by the close of day USD after hitting day’s high of 1.3253 lost its shine.

Bernanke’s presence during the week helped market to trade on his sentiments based on his speech, but in real terms the conclusion was that he tried to maintain a balance and did not allow guessing correctly. My pick is that he gave a correct assessment about the US economic that it is going to be a long struggle and still has long way to go. He will not take/make any risk/decision to spoil years of hard work that can blow up the recovery.

Since it will take many more years for the economy to get back at its normal pace, hence FED Chairman seems willing to act and mend accordingly, as and when necessary, which means that inflation is a matter of grave concern but quantitative easing (QE) is more important to stimulate the economy. Inflation number could surge but rate hike may not be affordable.

UK is a good example that despite over 5 pct inflation BoE kept its bank rate at 0.5 pct, so it’s workable. Another e.g., BUBA, German Central Bank famous for not compromising on issues is happy to see European’s money printing machine active and makes no fuss.  The world has learned that do whatever is necessary to protect the rich and make sure that rich class of the society does not lose money.     

 

 

GOLD @ $ 1663 = No word on QE and India consuming less gold as protest enters 13th day does not make gold very attractive. Prefer continuation of strategy sell on rise.

Down trend to remain intact as long as Gold stays below $ 1676. Prefer selling around $ 1665-67. Stops $ 1672 for & 1656 or $ 1652

 

GBP @ 1.5975 = Unlikely to break 1.60 in Asia any cable up move should be a sell with STOPS 1.6025, for test of 1.5940-50 zone, watch this level, as GBP could dip to 1.5925, buy GBP if seen as it could later attack and break 1.60 for 1.6060. Downside break of 1.5880 will delay up move.

 

EURO @ 1.3352 = Initially I see a drop towards 1.3300-10 zones before making another upside attempt. Prior to European opening if Euro climbs toward 1.3370 prefer selling, as I do not expect a break of 1.34 in Asia. But on dips Euro can be bought with Stops 1.3270 for 1.3390’s

 

RangE TradinG UntiL NYK – GoLD BiaS DownSidE - Mar 29

http://www.forexstreet.net/profiles/blogs/range-trading-until-nyk-g...

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Comment by asad rizvi on March 30, 2012 at 4:37am

Sabbir, I can thank you for the good words and confidence shown in me. I think they are all cable, but they are hesitant to speak up. Secondly analyst working for an institution has a job to do, they have given a target.

Did you ever realize that analyst can only survive by talking good thing despite all the ills? Bear market is death for economist and all types of so called experts. Bear market means loss. When there is loss there is no money to pay. Final result is you know what DEBT. The world can only survive by creating debt. As long s they are able to create debt they will survive. They day they are unable to continue. Its another collapse, so collapse will be seen more often as there is no alternate.

Do you know about TULIP BULB CRAZE? In 16th century Dutch brought TULIP from Turkey. Due to whether condition it stated to change in to beautiful color. Buying craze was to such an extent that people sold their house to purchase Tulip bulbs in a hope to mint money by selling it to the foreigners.  When a seller started selling in bulk there were few buyers willing to purchase at 10 pct of the purchase value.

This time the disaster is going to worst that we can think. I cannot tell you the time. Well may in next 5-10-20 years. This is one of the reason that the size of debt has become so huge that world financial brains are left with no brains and have decided to print money, which is against the economic norms.

Keep smiling and not worry because others do not worry for you….GL

Comment by syed on March 30, 2012 at 4:44am

hello sir how many pips you can catch in a month on an average

Comment by asad rizvi on March 30, 2012 at 5:18am

It depends that how good or bad a trader is in taking decision and maintaining discipline...GL

Comment by syed on March 30, 2012 at 5:20am

sir i am asking about you not other traders.as you are master and expert

Comment by asad rizvi on March 30, 2012 at 5:23am

I am not an expert. You did not vote for me........  

Comment by syed on March 30, 2012 at 5:24am

sir i logged in after long long time

Comment by asad rizvi on March 30, 2012 at 5:28am

Then you should not be blamed for putting this question. But you are not the right person to participate in this forum......

Comment by syed on March 30, 2012 at 5:35am

sir i am giving you respect and you are doing the opposite.

Comment by asad rizvi on March 30, 2012 at 5:45am

Try this one...http://www.forexpros.com/quotes/single-currency-crosses

and you can check with graphs... as well 

Comment by UmairButt on March 30, 2012 at 5:49am

sir i am still waiting for your answer about some islamic broker ?

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