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GreecE WiLL ExiT iN 2-YearS

November 28, 2012

GMT 7:59 – (Subscriber) – hello as i hear that in egypt again huge protest started befor when mubarak time when protet started gold gave a huge ralley from 1309 in 1 day 55 to 6o dollar up because of egypt now how will gold receat willl egypt protest effect gold market
GMT 8:22 – No, I do not buy this theory…………..
GMT 8:23 (Subscriber) – sir shall sell eur at 1.2940!!
GMT 8:30 – Yes around 1.2940-50
GMT 12:19 – GOLD @ $ 1734 = should hold around $ 1731-33 for $ 1737-39 STOPS $ 1728
GMT 12:27 – GBP @ 1.5985 = Take profit around 1.5980-85
GMT 13:30 – GOLD @ $ 1718 = stay away from gold. Large selling, but could still bounce back sharply ftom $ 1710……
GMT 13:40 -(Subscriber) -gold 25 dollar drop????
GMT 13:41 -Yes, larger sell order. Ihave already posted earlier to stay away and if $ 1710 holds could see $ 15-20 recovery
GMT 13:42 – (Subscriber) -sir, Whats about EURO? Take profit on shorts here?
GMT 13:43 – yes book your profit………very choppy market
GMT 13:47 – GOLD @ $ 1713 = do not rush could still test $ 1702-05 zones. Buy if drop to lows
GMT 13:50 -AUD 1.0431 = Take profit around 1.0426-31
GMT 14:21 – GOLD @ $ 1712 = This could be last downside attempt and if $ 1707-09 holds we could a test of $ 1720 + or esle $ 1705 before up again…
GMT 15:01 – Ok pals, end of a good day………
Cheers until tomorrow……….

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GMT 3:22 EURO @ 12927 – Greek deal did not have lasting impact as market seem to have realized that in real terms no money has been spent so far, its all paper work that is taking place though they are suppose to get another funding of Euro 44 billion, it has also been blessed with 2-year grace period probably because record suggest that since 2010 it has been most disorganised country in terms of economic management, Greece has also failed to fulfill its commitment, but the problem faced by Euro-zone financial managers is that parting Greece right now would have meant more trouble for the Euro region, which is not affordable, as this could lead to collapse the financial system.
Therefore, in present scenario nothing could have been better bargain than to offer Greece another 2-year grace period. This was a better choice instead of writing down Euro 50 billion debt. I think negotiators will be watching the progress with interest and they will also get time to decide next line of action during this period.
In my view, 2-year period is the calculated time that will provide opportunity to Greece to exit Euro-zone and simultaneously Euro-zone region to prepare a contingency plan, because Greece with a size of 225 billion economy and already faced with 26 pct unemployment can neither implement austerity measures nor its economy has the capability to bring down the debt to the desired level, but all involved will surely have good reason to justify the cause of breaking the marriage.
Overnight development suggest that US Dollar is still better placed and there is plenty to cheer. Euro once again struggled to penetrate beyond 1.30 level, probably realizing that Euro-zone woes are not over as yet. The deal requires German Parliament’s endorsement, Catalonia referendum is yet not a closed chapter. While US economic performance is comparatively far better than others. Hence, Euro will find strong resistance around 1.2985-95 zones and could be tough to crack. I am expecting a gradual decline of Euro on break of 1.2875-80 for 1.2850 or else 1.3050 remains a major resistance level.
GMT 3:35 – GOLD @ $ 1741.50 = In Asia/Europe, gold shoudl trade in tight range with top around $ 1743-45, sell if seen and may hold around $ 1737.
GMT 3:32 – AUD @ 1.0444 = Bias remains on the downside and should not penetrate beyond 1.0490-95 levels, but needs to fall below 1.0440-10 for test of 1.0380-90
GMT 3:29 – JPY 81.82 = Fall is quite in line of my expectaion, as look for a fall below 81.65-70, but suggest taking profit and wait to SHORT Yen and Long USD around 81.50 zones. On the downside 81.10-20 is the key level to watch
GMT 3:27 – GBP @ 1.6010 = Cable has benn struggling to move beyond 1.6050-80 convincingly that has increased risk for further fall. Hence prefer pciking the top to sell for test of 1.5970-80 zones

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