PrefeR SellinG EurO, GbP & GoLD -- Mar 28

Bernanke in his speech reiterated his earlier statement that there is no impeding end to loose monetary policy. It seems he has no plans to change his ongoing current strategy because he thinks that growth since last 3-years have been satisfactory. He may be right as unemployment fell to 8.3 pct, so he may not spoil all the hard work further suggesting that he is comfortable with low rate and QE.

In his recent speech my gut feeling is that FED Chairman is bit unsure about the current employment trend, which means that the pace of GDP could mildly slow down or may not pick up the desired level and unless growth pace in maintained job numbers cannot be improved.

Therefore, QE3 is live ammunition in his sleeves, which he may want to use only when he feels it is necessary to use and if he thinks that QE3 is of great value then he will certainly not be willing to risk the economy by shifting his lose monetary policy stance.

Coming quarterly growth numbers, payroll and growth in manufacturing sector will provide clearer picture of the economy. Bottom line is that FED Chairman’s message is clear that FED’s stance will remain soft.

Let’s wait and see what Mr. Bernanke has to say in his next appearance on Thursday.

Euro @= 1.3330 = As I have always been saying that if Euro surges 100 pips, then pick top to sell, because Euro does not have enough legs to make bigger strides as there is no big supportive factor to push Euro much beyond and yester this strategy once again proved to be correct.

Today Euro will continue to struggle and should exhaust around 1.3340-50. Unless it surges beyond 1.3380, test of new high will not be possible, looking for dip, needs to make a clear break of 1.3280 for 1.3265.

GBP @ = 1.5958 = Today, I would like to sell cable around 1.5980 with STOPS 1.6010. Break of 1.5805 risk for a test of 1.5860 or else 1.6060.

GOLD @ = $ 1680.50= My Gold target of $ 1698 was met comfortably. But failure to penetrate beyond gave good excuse to halt the ongoing rally and now is back in neutral zone.

Prefer selling around $ 1682-85 zones with Stops $ 1688 for a drop to $ 1672-74 area or else $ 1692.

Mar 27 - GoLD tO gain – GbP BuY oN DipS – EurO, PicK ToP/BottoM

http://www.forexstreet.net/profiles/blogs/gold-to-gain-gbp-buy-on-d...

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

8 members like this

Comment by yasir kidwai on March 28, 2012 at 8:37am: Thank you sir

Comment by shehzana shamsi on March 28, 2012 at 8:42am: missed on gold again......waiting to sell euro@1.3365

Comment by spring on March 28, 2012 at 8:50am: sell euro@1.3369

My euro target around 1.3260-85

Comment by nader on March 28, 2012 at 8:51am: Thank you sir

Comment by asad rizvi on March 28, 2012 at 8:51am: Excellent & GL

Comment by Jason on March 28, 2012 at 9:16am: Hi SIr

It appears that GOLD and currencies are settling down into their ranges again.

But it appears today that the majors are weaker against the USD>

Its been a difficult market as the currencies are moving very differently on a daily basis.

Appreciate your updates sir. They have been very helpful.

Comment by Syed Rehan Ali Bukhari on March 28, 2012 at 9:50am: Dear Sir, My name is Bukhari Can i sell Gold As per your comments b/w 1772-76 with stop 1668

Thanks

Comment by asad rizvi on March 28, 2012 at 9:59am: I think you want to Buy Gold around $ 1672-76. Well it was my morning call and I recomeded to take profit around $ 1683.

Now I would prefer to wait to buy around $ 1670 with STOPS $ 1664 and take profit at $ 1679

Comment by shehzana shamsi on March 28, 2012 at 10:11am: Mr Rizvi do u still think euro can be sold at this level as i missed my sell entry by a few pips

Comment by asad rizvi on March 28, 2012 at 10:16am: Shehzana by Selling Euro @ 1.3342, you have keep in mind that support is around 1.3315-20, if fails to break then we may seen another test of 1.3360-70.

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