EurO tO CoMe UndeR PresSurE – SelL GoLD - Apr 19

Since last week, news from Europe and Spain continues to dominate the world financial market.  This week we saw successful biding of Spain’s short term bond, but today’s 10-year auction would further indicate investor’s confidence level in Spanish economy.

Spain’s latest doubtful bank loan figures added more to country’s economic gloom, since February’s number suggest that the ratio of bad loans jumped to 18-years high to Euro 143.8 billion to 8.15 pct of the total credit versus from 7.91 pct in January.

I am not sure how many of you took note of my yesterday’s post, I had highlighted that UK’s MPC meeting minutes could be the main driver behind Pound Sterling’s move, which roar passed the 1.60 figure.  

Helped by better employment data, Pound got further boost when dovish Adam Posen did not demand for an increase in the size of QE, which is currently GBP 325 billion.

Today’s US Economic data could give last push to Euro to slide below 1.30 levels, as market should be nervous after French Socialist challenger Hollande’s statement that he will protect sovereignty and re-negotiate German led fiscal pact. Survey suggests that the Socialist challenger is constantly leading by over 7 pct. Spain’s 10-year bond auction will be today’s trend setter. One thing is for sure that there is plenty in Europe to worry about.

 

Gold @ $ 1641 = Selling strategy to continue around $ 1642-44, as Gold should stay below $ 1649 for $ 1633-35 levels as my new target is $ 1626. However, only break of $ 1652 could delay the down move

 

Euro @= 1.3122= Sell Euro around 1.3135-40, a break of 1.3080 is required for a test of 1.3040. A break of this level would pave way for 1.2950. However, only break above 1.3180 could risk for minor gain.

 

GBP @ = 1.6032= There is a minor risk that break of 1.6045 could push Cable towards 1.6070. However, once 1.5975 surrenders Pound would ease and should test 1.5840.

 

DuLL TradinG DaY AheaD – SeLL GolD oN RisE - ApR 18

http://www.forexstreet.net/profiles/blogs/dull-trading-day-sell-gol...

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Comment by asad rizvi on April 19, 2012 at 12:31pm

Mohamad, ………………“The Party is Over”………………….

Comment by Sumeet Singh on April 19, 2012 at 12:35pm

sir do you think euro will break 1.3060 and test 1.3040 today?

Comment by Syed Rehan Ali Bukhari on April 19, 2012 at 1:40pm

Sir, What your Suggestion about Gold Sell or wait Pl..?

Comment by naivetrader1 on April 19, 2012 at 2:29pm

Cable is marching ahead with the Olympic Torch, in hand!!!

Comment by spring on April 19, 2012 at 2:34pm

When China  2008  Olympic Gme ---------Stock market Drop down !!

Comment by Mohamad on April 19, 2012 at 3:00pm

Gold is the real currency of the world ..

Comment by Syed Rehan Ali Bukhari on April 19, 2012 at 3:04pm

Mohamad i agree with you but what you think about at this movement S/B?

Comment by Mohamad on April 19, 2012 at 3:19pm

 try scalping short 1652 with tight stop at 1654 target 1643 .. i did it twice .. I think there's a big chance of 1668 .. wait Mr. Rizvi .. he's the expert :)

Comment by Mohamad on April 19, 2012 at 3:48pm

There's news that Syria is selling it's reserves of gold 15 % lower than market value

Comment by Sumeet Singh on April 19, 2012 at 4:15pm

No movement here in this forum today as Mr. Rizvi is out for meeting. :).Was just thinking what will happen when he will leave this forum for his permanent business. :)

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