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GrEeCe PaVeS wAy fOr SpAiN – nOv 27

November 27, 2012

GMT 3:20 – GBP @ 1.6031 = Should find support around 1.5995-05, but Cable may struggle unless penetrate beyond 1.6080-90 comfortably. 1.5870-75 is the downside level to watch.
GMT 3:23 – AUD 1.0478 = Barrier is at 1.0495-00, unless break cleanly could dip below 1.0450 to test 1.0420-30 zones. On the upside should exhaust around 1.0530
GMT 3:26 – JPY @ 82.01 = Looks tough to move beyond 82.10-15 and could dip further down towards 81.70-80 zones
GMT 3:31 – GOLD @ $ 1749.50 = I would still prefer to buy around $ 1744-45 levels with Stops $ 1740-41, but needs to push beyond % 1754-55 for test of $ 1758-60 zones
GMT 10:20 (subscriber) Recommend long eur@ 1,2944 if seen ?
GMT 10:21 – EURO @ 1.2942 = Yes around 1.2937-42
GMT 12:12 (Subscriber) buy gold at 1746 level as any change in view
GMT 12:14 – No change in view until data………..
GMT 12:26 – GBP @ 1.6030 = Cable has small upside potential and needs to push beyond 1.6045-50 zones for test of 1.6070-75. Buy on dips prefered keep close watch on 1.5980-90 zones should not surrender
GMT 13:26 – JPY @ 81.23 = Stay away from Yen. Right now we are in the middle of the range.
GMT 13:36 – Buy Euro, GBP $ GOLD on dip. STOPS if 1.2890, 1.599850 or $ 1742 breaks. Jpy to hold areond 82.40-45
GMT 13:42 – GBP @ 1.6050 = looking good to test 1.6080-90
GMT 14:02 – No change in view, but do book your profit
GMT 15:38 – Euro @ 1.2920= allow aother 5-10 pip fall before buying, but do apply your stops if 1.2880-90 surrenders. on te upsdie needs to break 1.2955 for more gains…..
GOLD @ $ 1744 = Watch $ 1741-21 levels needs to break $ 1747-48
Cheers until tomorrow………….

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GMT 3:15 – Euro @ 1.2982 = “Greece is done deal” , this is what I wrote in my post on Nov 14. Does this really matter and is there any economic benefit to the Euro-zone region ? No, but it does paves way to start discussion for next problem, which is creeping fast and could bust the pipeline.
How on earth is it possible that Greece USD 225 billion economy, with unemployment reaching 26 pct till date from historical average of 11.8 pct that contributes less than 3 pct in terms of Eurozone economic output will reduce Debt/GDP ratio to 124 pct by 2020 from almost 175 pct (current), as its economy is totally dependent on tourism and shipping with service sector playing an important role. When Greece was given bailout package in 2010, its economy was suppose to recover by now, instead it has so far shrank by over 6-7 pct.
Probably debt forgiveness could be one of the major topic of discussion on the table that may not have worked well, so buying of time was as easier choice, as I have already pointed out that previous two years record says Greece situation got from bad to worse, but current accord between TROIKA & IMF will provide enough space to rating agencies to jack up Greece rating in coming days that will also help to reduce cost of borrowing.
So finally this could be another success story of window dressing for the does of the game, but this may have lasting impact, as this prove to be temporary and short lived.
Technically Euro should hold around 1.2940-50 zones and make an attempt to penetrate beyond 1.3010-20 for 1.3050 or bigger gain, but a fall below 1.2905 could be 1st signal that the ongoing party will soon end.

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