EurO & GoLD – CaT & MouSe GamE to ContinuE

Market has been waiting for two major developments, G-20 meeting in Mexico and German parliament decision on the Greek bailout issue. Whatever may be the outcome, but one thing is for sure that the Germans will have to continue to play lead role in this whole episode. This is what my conclusion is about the G-20 meeting.

They are well aware of the urgency and seemed willing to help Europe. Interestingly, the condition set by G-20 to support and add more IMF fund is a clear message to Germany that they will have to make bigger contribution in the European pool probably sensing that Merkel is having tough time with the Berlin administration, as French will be going for elections and other can contribute little to help the cause.

It seems that initially G-20’s message worked well despite opposition/criticism to get Merkel clearance from the parliament for Euro 130 billion Greek bailout packages. But the bigger test is yet to come as European Union leaders are meeting in Brussels for formal approval and may have to decide adding more money to obtain more IMF funding.

Size of LTRO will be another key factor that will keep market on its toes until it is announced. My hunch says that anything above EURO 400 billion could be taken positively. Less could be bad news for Italian and Spanish bonds.

So market to remain choppy as uncertainty prevails.

EURO @ 1.3412= The cat and mouse game of buying the currency at bottom of the chart and selling at the top to continue. Market moves will largely depend on news/rumors. I believe that market for now will be watching two major levels that are 1.3320 and 1.3490. Prefer to buy Euro around 1.3380 and Sell Euro around 1.3440

GBP @ 1.5830 = Prefer buying on dips around 1.5612-18 for 1.5875-80 with Stops 1.5780

GOLD @ $ 1769.02 = Buying on dips is still preferred, with quick profit taking suggested. Do not jump in the middle of the range as, Gold does not have one sided direction would continue to move both ways, but buying interest to dominate. Buying around $ 1760-62 is preferred as Selling around $ 1774-75 may not be bad idea as long as $ 1779 holds.

KEEP WATCHING THE BLOG FOR REGULAR UPDATES

Feb 27 - EurO & GoLD to MakE MorE GainS

http://www.forexstreet.net/profiles/blogs/euro-gold-to-make-more-gains

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3 members like this

Comment by asad rizvi on February 28, 2012 at 5:58am: Euro @ 1.3442.....Prefer selling around 1.3450-55...More Later

Comment by Jason on February 28, 2012 at 6:39am: Hi Mr Rivzi. Nice to hear from you again. You have been very often spot on in the FX markets.

You prefer selling EUR around 1.3450 - 55..

Dunno...I have this niggling feeling that we may just see the 1.35 tested today...

What do you think ?

Comment by asad rizvi on February 28, 2012 at 6:49am: Euro @ 1.3437 = I do not see any reason for the moment, but suggest quick profit if someone is short EURO on my views around 1.3450, so that buying opportunity is not missed on dips.

However, you could be right because if we hear any positive news from Europe, which is always a possibility, EURO could gain. Any surge should be short lived until LTRO figures, which expected tomorrow effective Thursday. Thanks

Comment by Jason on February 28, 2012 at 6:59am: Thanks Sir.

Appreciate your response.

Comment by asad rizvi on February 28, 2012 at 9:17am: Euro @ 1.3430 = If you went long EURO suggest taking profit around 1.3422-28, as talk of BIG Size LTRO will give lift to EURO that could push currency higher to tesr 1.3475-80.

To buy Euro wait for further dip around 1.3415-20.

Comment by Jason on February 28, 2012 at 9:22am: Hi Mr Rivzi

Thanks for your timely update.

Are referring to the take profit levels at 1.3522 - 28 ??

Comment by kenneth lim chee tshun on February 28, 2012 at 9:24am: eurjpy is it keep uptrend?

Comment by asad rizvi on February 28, 2012 at 9:25am: Cheers Jason. I always say, to be successful in Trading, do not let the ego dominate. Trend is your friend.

Comment by asad rizvi on February 28, 2012 at 9:31am: Kenneth, please accept my apologies. Honestly speaking I am not good at that as I have no experience.

Comment by Keith Shaw on February 28, 2012 at 9:41am: 'Trend is your friend', ONLY if you have a good Trading Plan with appropriate RR and are able to EXECUTE that plan REPEATEDLY &, Flawlessly, else 'The Trend' can be your Worst Enemy. ;)