The results season is accelerating and pushing Wall Street to new highs, as Goldman Sachs (GS) bit analysts expectations and rose 7% yesterday. The S&P 500 made another attempt of breaking-through the level of 1300 points, which was better than the previous attempt on Tuesday, and if today's reports of Google and Intel bit Wall Street, the S&P might continue the bullish momentum towards 1330 points.
EUR/USD
The US stock markets and the USD usually have a negative correlation but it has been a positive correlation in the recent weeks. Yesterday, the risings of the stocks weakened the American dollar against most of the major currencies, and this might signal that the correlation is negative again.
The Euro reached the lower boundary of the channel, which we have been analyzing for several weeks, and made the expected correction towards the upper boundary that is now resisting the pair at 1.285. The Greek haircut of the private sector also supported the Euro and if a short-squeeze begins here, the price might jump to 1.305-1.31.
GOLD
Two weeks ago, we analyzed the precious metals and we estimated that they would continue the bullish momentum from the end of 2011. The gold traded around the 200 SMA then and we estimated that the level of $1600 was an important support for the metal. The gold slid to this level, which was as strong as we expected, and a bullish reversal occurred there. The metal eventually broke through the 200 SMA, which became a support, and it is now dealing with the resistance of the level of $1667, which was a break-down level two months ago.
If the resistance is too strong and the gold fails in breaking it through, the metal can slide to the level of $1600 again. However, a break-up of the current resistance might lift the gold's price up to $1730.
Silver
On the beginning of December, we suggested a short-trade in case of a break-down of the "head & shoulders" pattern at $31. The break-down was as strong as we estimated and those who implemented this trade idea enjoyed declines of 15% in the silver's price. The metal set a bottom at $26.13 on the last week of last years, and gained almost everything it lost during the break-down, so the current resistance is at $31. Many sellers will probably wait there, but if the silver manages to overcome this resistance, it might jump to $33. Otherwise, it might turn over and slide to $29 or even below.
EUR/USD
The US stock markets and the USD usually have a negative correlation but it has been a positive correlation in the recent weeks. Yesterday, the risings of the stocks weakened the American dollar against most of the major currencies, and this might signal that the correlation is negative again.
The Euro reached the lower boundary of the channel, which we have been analyzing for several weeks, and made the expected correction towards the upper boundary that is now resisting the pair at 1.285. The Greek haircut of the private sector also supported the Euro and if a short-squeeze begins here, the price might jump to 1.305-1.31.
Two weeks ago, we analyzed the precious metals and we estimated that they would continue the bullish momentum from the end of 2011. The gold traded around the 200 SMA then and we estimated that the level of $1600 was an important support for the metal. The gold slid to this level, which was as strong as we expected, and a bullish reversal occurred there. The metal eventually broke through the 200 SMA, which became a support, and it is now dealing with the resistance of the level of $1667, which was a break-down level two months ago.
If the resistance is too strong and the gold fails in breaking it through, the metal can slide to the level of $1600 again. However, a break-up of the current resistance might lift the gold's price up to $1730.
On the beginning of December, we suggested a short-trade in case of a break-down of the "head & shoulders" pattern at $31. The break-down was as strong as we estimated and those who implemented this trade idea enjoyed declines of 15% in the silver's price. The metal set a bottom at $26.13 on the last week of last years, and gained almost everything it lost during the break-down, so the current resistance is at $31. Many sellers will probably wait there, but if the silver manages to overcome this resistance, it might jump to $33. Otherwise, it might turn over and slide to $29 or even below.
Risk Disclosure
Trading and the execution of transactions in currencies, commodities,CFD indexes and other financial products with or without using high financial leverage, is speculative trading of high risk and may cause substantial gain or loss proportional to the size of the collateral, up to the total loss of the collateral sum in a very short period. The fluctuation of the prices and rates in the currency markets, commodities, CFD ,indexes and other financial derivatives are often volatile and there is no accurate forecasting as per the size of the change, its direction and the time frame in which it occurs.You must consider carefully and seriously if this type of financial activity fits your needs, your financial resources and personal circumstances. Since the risk of losing some of the invested funds or all the funds in a relative short period is high; it is recommended that you use for that purpose funds which you designated for speculative financial transactions of high risk.
You acknowledge and fully understand that there may be more and other risks which are not detailed or not cotained above
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