GoLD BottomeD OuT – EurO & GbP BiaS UpwarD

Global Financial Market will be looking towards two major European events, ECB decision on rates and Greece Bond Swap (PSI) window that closes around GMT 20:00.

Any cut would be surprise, as there is no such urgency for a slash, but recent softer economic numbers coming from Europe has provided small space to the ECB decision makers that can combine LTRO Euro 1 Trillion with a cut to give boost to the market for stimulation of European economy.

I consider Greece Bond Swap (PSI) as a done deal because Europe cannot afford another adventurism at a time when the policy makers against all odds have already injected Euro 1 Trillion.

In another new development article published in WSJ hinting FED considering new type of bond buying program means FED money printing machine will soon start working. Watch out Gold and commodity traders, as short is no more recommended.  If short, squaring of position is suggested before you are caught wrong footed and get trapped. Start bottom hunting to catch the big coming move.   

 

GOLD $ 1685 = Gold may have seen the bottom, it has strong support around $ 1676-78 zones should hold for a break of $ 1689 that will push the metal towards $ 1696, as I am looking for a break of this level for a test of $ 1712 next week. Or else $ 1665

 EURO @ 1.3143 = Euro should make gains today, preferred buying levels around 1.3120-30 for a test of 1.3184, break of 1.3190 would confirm Euro heading for 1.3235 or 1.3280. Possibility of volatile moves cannot be ruled out. Dip can extend up to 1.3096. However, break of 1.3065 would suggest a test of 1.2950

GBP @ 1.5732 = Buying Cable is preferred around 1.5720-25, a break of 1.5770 will push the British currency towards 1.5795 where is could met same resistance but clear break would encourage to enter 1.5840-45 zones. The level to watch is 1.5670.  

 

March 7 - CHoPPy DaY AheaD - March 07

http://www.forexstreet.net/profiles/blogs/choppy-day-ahead-march-07...

Views: 879

Tags: http://asadcmka.blogspot.com/

Comment by asad rizvi on March 8, 2012 at 4:03am

Today, Euro & GBP is buy on dip

Comment by UmairButt on March 8, 2012 at 6:22am
Comment by UmairButt on March 8, 2012 at 6:22am

sir what u say about this?

Comment by asad rizvi on March 8, 2012 at 6:39am

Umair, 12 hours have passed, so things are different and in next 12 hours you will see a visible change. In short its done deal beacuse Europe needs this deal, not Greece !!

Comment by UmairButt on March 8, 2012 at 6:46am

sensible answer agree sir.

Comment by UmairButt on March 8, 2012 at 7:11am

sir..sommerzbank has alwaz a strange say...now they are saying good rebound and shorts target 1.30

Comment by sabbir on March 8, 2012 at 7:21am

i think they are one of the players to deceive the small traders to commit wrong position and earn from them. 

Comment by asad rizvi on March 8, 2012 at 7:24am

Umair, a bank or a position taker will always talk about position as per position taken. If there are no buyers then there are no sellers or selling is not possible without buying interest. It’s a failure of Global Governments and Central Banks, Regulators and Rating agencies that has caused Global Financial unrest. They all have been proved wrong. Theories of all those so called Educated Economist & Analyst from World’s Elite Universities have proved to be wrong but no will criticize those Education Institutions. The point that I am trying to make is that we should listen to everyone, but decision should be your own. I do read a lot, but write what in my view is correct. I know I cannot be correct all the time, but I don’t mind expressing my views……………Cheers

Comment by UmairButt on March 8, 2012 at 7:40am

yes no one is forced and afterall u r senior therfore i like to learn from ur experiance...appreciate ur response and guideness.

Comment by asad rizvi on March 8, 2012 at 7:46am

Sabbir, this could be a part of strategy, which is OK. But there are plenty of smarter people around to take advantage of such opportunities and gain from such happenings.

Comment

You need to be a member of Forex Social Network to add comments!

Join Forex Social Network

Members

© 2014   Created by FXStreet.

Badges  |  Report an Issue  |  Terms of Service

Offline

Live Video