PrefeR SellinG EurO & GoLD

Yesterday’s fall of Euro in early New York session was caused by STOPS that was triggered @ 1.3190, but in real sense there was no other motivating factor that could give more life to the US Dollar. Euro bounced from 1.3172, as market players must have realized that news coming out from Euro zone is still setting positive tone.

Another factor that could have drove Euro up is because of China’s economic slowdown worry that may have cautioned investors from investing in AUD at least for the time being due to Australian economy’s linkage with Chinese economy. Australia major trading partner is China and Chinese economic slowdown is bad news for the Aussies.

Furthermore, market players are having cautious approach until UK budget which is due today. Hence Pound Sterling will continue to trade in narrow band till budget announcement.

However, it all does not change my view, as Euro will continue to trade in 80-100 pip range either way before correcting, as Euro does not have strong legs to make big 150-200 pip one way surge and will continue to pause, so strategy remains unchanged, pick bottom and top of the range.

My strategy for Gold is very similar to that of yesterday’s, sell on rise, as FED’s QE3 does not look a possibility in near term and India government threatening more curb on gold import if deficit does not come down and with slowdown in China, gold lovers will need some time to regain confidence.

EURO @ 1.3273 = Prefer selling Euro around 1.3295 for a dip and test of 1.3225-35 zones with STOPS if 1.3330 surrenders.

GBP @ 1.5887 = Prefer waiting to sell around 1.5910 with tight Stops around 1.5935, but quick profit taking and squaring of position preferred. May see volatility before budget

GOLD @ $ 1654 = Sell around $ 1655-58, STOPS is $ 1662 for $ 1645

March - 20 GoLD SofT – EurO CatcH BottoM or ToP

http://www.forexstreet.net/profiles/blogs/gold-soft-euro-catch-bott...

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

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Comment by Mohamad on March 21, 2012 at 4:04am: Good day Mr. Rizvi .. do you have any news on Aussie ?

Regards

Comment by Gordon Gekko on March 21, 2012 at 4:24am: Dear Mr. Risvi, Woke up earlier to catch your recommendation on Gold. By the time I read it Gold is @1651.80. Is the opportunity to enter between 58-55 lost or I should and place a sell limit order on for 1658?

Thank you.

Comment by asad rizvi on March 21, 2012 at 4:27am: AUD @1.0486 =Hi Mohamad - I think AUD will remain under pressure after the China setback 1.0525-30 would be hard to crack any up move would be opportunity to sell. Break heare could see a test of 1.0550, which may not happen, as I am am expecting a gradul dip towrds 1.0425, break of 1.0458 would enocurage downmove. Overall recovery towards 1.060 should be difficult for more loses in the comming days....Cheers

Comment by asad rizvi on March 21, 2012 at 6:14am: GOLD @ 1651 = Mr. Zaid be patience and move with the flow. I could be wrong, but I would prefer to wait for my levels rather than jumping without having a clue...GL

Comment by Gordon Gekko on March 21, 2012 at 8:04am: Thank you Mr. Risvi for your continued and genuine support. I sincerely appreciate the time and wisdom you put in when you reply to me.

BR,

Comment by Aditya on March 21, 2012 at 8:27am: Dear Mr Rizvi..Looking forward to your comments on gold now @ 1658...Should we sell or wait to make any move just as yet ?

Comment by asad rizvi on March 21, 2012 at 8:29am: Prefer selling around $ 1660's

Comment by Aditya on March 21, 2012 at 8:30am: Thanks Sir

Comment by asad rizvi on March 21, 2012 at 8:33am: GBP @ 1.5912 = As we are getting close to UK Budget announcement Selling of Pound is not recommended, as we could see a test of 1.5930-40 zones before budget. Dips should find support around 1.5880, but not do expect fall below 1.5840. On the upside, a break of 1.5970 is required for a possible test of 1.6045. Major support is at 1.5810. Market will remain choppy

Comment by Jason on March 21, 2012 at 8:45am: Hi Sir

Thank you for your updates as usual.

Sir, I have a question for you.

I saw you writing on the AUD earlier and you appeared to be bearish on the AUD>

Can I find out what you think of the AUD now in view of the current price action ?

Thanks