USD BiaS DownSidE – GBP PicK of the DaY

Since Greek deal is temporarily over we could hear some bickering from German, Dutch or European policy makers, which may not have larger impact on EURO. However, there is still plenty and painful moments to be seen in future. Spain and Italy is not a forgotten story.

Market look poised to push Euro higher and they may find some excuse that could give boost to the currencies, which may be heading for new highs in the coming days.

All eyes will be on the next big thing that is going to happen on Feb 28, as ECB will offer 2nd batch of 3-years loans to banks that will be credited on Feb 29, yes it’s the generous Long Term Refinancing operation money (LTRO).

In December last year ECB gave about EURO 489 billion. This ECB offer is almost free of cost that it lends against collateral. Bottom line is that it will help EURO and GOLD.

 

EURO @ 1.3251= We have witnessed enough of bearish spell, now EURO may not break below 1.3325-30 zones. The risk is for a test and convincing break of 1.3295 for 1.3326

GBP @ 1.5666 = It may be all over Cable is a buy around 1.5645-55 for test and break of 1.5695. I am expecting a test of 1.5748. On down side break of 1.5610 could be threatening for more losses, which I s nota favorable scenario.

JPY @ 80.15 = Yen has strong support against USD at 80.28 and may not break unless it test 79.85 before making another attempt to break 80.30

GOLD @ $ 1774 = There is a risk that if Gold fails to break support area $ 1770-72 on the down side, it will bounce back to retest $ 1781 and convincing a break hear could push Gold towards $ 1788, which is my expectation. Only break of support could force a test of $ 1762.

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Comment by asad rizvi on February 23, 2012 at 9:09am

Euro @ 1.3318 = Current move is PERFECT in line of my morning forecast surpassing 1.3295 comfortably to hit my morning target of 1.3326. The rally could extend up to or around 1.3345 before exhausting and go for 40-45 pip correction…..More Later

Comment by Madeen on February 23, 2012 at 9:13am
Is it good to go long on cable from here for your morning target of 5746?
Comment by asad rizvi on February 23, 2012 at 9:22am

GBP @ 1.5805 = My preference of trading is a catch bottom of top, which reduces the chance of big mishaps. I do not like jumping in the middle of the range, which is often confusing. However, my view remains unchanged.

Comment by Madeen on February 23, 2012 at 9:24am
Thank you waiting for euro to hit 3340s to short like you said :-)
Comment by asad rizvi on February 23, 2012 at 9:27am

GL & do not forget to VOTE for me ;-)

Comment by asad rizvi on February 23, 2012 at 9:41am

Gold @ 1780.50 = As per my morning forecast bounced back perfectly from $ 1772 to re-test $ 1781 zones. Now requires a clear break to test $ 1788 or should dip to $ 1775 before making another upside attempt….More Later

Comment by asad rizvi on February 23, 2012 at 11:08am

 

Euro @ 1.3302 = So here is the 45 pip fall after hitting Target 1.3342. Sell EURO around 1.3270-80 levels. Should hold 1.3240 to make another upside attack.

Comment by Madeen on February 23, 2012 at 11:21am
Had a sell order at 3245 so frustrating! Sir if its going to have another upside attack how can we short at 3280?
Comment by naivetrader1 on February 23, 2012 at 11:22am

Talking about the Trend, do u think, it's changing to UPside (3400+) for now & not towards 3100....?

Comment by asad rizvi on February 23, 2012 at 12:24pm

Yes.But needs to clear strong barries 1.3380

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