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STroNG US GdP FaiLs tO GiVe LiFt tO USD oN FiScAL isSue

November 30, 2012

GMT 12:57 – (Subscriber) sir shall usd/jpy now!!
GMT 12:58 – pd OY @ 82.68 = well my prefered area is around 82.72-78
GMT 13:04 – GOLD @ $ 1728.50 = If hold above @ 1725-26 could see a test of $ 1732-34 zones
GMT 13:09 – GBP@ 1.6016 = Should hold around 1.6008-13 for 1.6040-45. Break of 1.5985-90 could see smome moew loss before up
GMT 13:21 – AUD @ 1.0406 = Book your profit around 1.0401-6
GMT 13:35 – GOLD @ $ 1721 = buy aoaund $ 1719-21 STOPS $ 1717
GMT 13:36 – EURO @ 1.2972 = Buy around 1.2867-72 = STOPs 1.2950
GMT 13:37 – GBP @ 1.5989 = If you are not Long uy GBP with 20 pip STOPs
GMT 14:15 – (Subscriber) up side where to book gold profit
GMT 14:20 – GOLD @ $ 1723.50 = Now Gold is struggling around $ 1724-25, so keep this in mind and it needs to penetrate beyond $ 1726 for $ 1730 or else could see another dip to test $ 1718-20 zone. Since today is last day of the month go home with small profit in your pocket……
GMT 14:02 – OK pals, I have done my job for the month, despite a tough one, it was quite fruitful.
Hope you all did well.
Have a nice weekend……………….Cheers

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GMT 3:30 -EURO @ 1.2990 – Despite strong economic data US Dollar could not benefit due to political backlog as as we approach January 01, which is the deadline date to settle fiscal issues. US House Speaker John Boehner has openly said that no substantive progress has been made in fiscal cliff negotiations. How to tax the rich seems to be the struggle point between the two leaders. One thing is for sure that no matter how much optimism there is about reaching an agreement, the matter will not be resolved until we get close to the deadline date or could be passing of the time limit. Delay may not suit and may cause damage to the government, but it does no harm to the opposition.
Getting back to US economic data, despite upward revision of 3rd quarter GDP from 2 pct to 2.7 pct that was better against market expectation and huge jump in October pending home sales US Dollar could not benefit. If we look at the GDP data the growth seems to be based on inventory build-up and not reflecting growth based on large sales suggesting that stocks are kept om shelves and production could be low in next quarter. The other alarming factor is that income trend is on the decline, which means few buyer.
Two developments suggest that delay in reaching fiscal understanding and with more signs of economic slowdown FED may have another strong case of easing i.e., QE4, but this could be too soon to discuss, as 4th quarter GDP that could be depressing due to Hurricane SANNDY, but next year, Q1 of 2013 economy is likely to make sharp reversal, as hurricane effected areas will see big surge in economic activity in the region.
Today another big even is Bundestag vote on Greece, which is likely to get nod that should help Euro to climb, but a surprise will sure knock the currency or any delay in decision will see Euro falling. Therefore would buy Euro around 1.2970 STOPS if 1.2935 surrenders. Take profit around 1.3020, has potential to test 1.305-55 zones
GMT 3:40 – GOLD @ $ 1726 = Should not surrnder $ 1718-20 levels. buy on dips around $ 1722, as gold has potential to test and break $ 1730. Prefer picking top to sell later in the day
GMT 3:37 – AUD 1.0420 = wait to sell around 1.0440-50. STOPS 1.0480. Take profit around 1.0392-98
GMT 3:34 – JPY 82.43 = this is what i was talking about that buy USD on dips as Yen will be sold on dips. Next level to watch is 82.70, break will encourage for 82.95 next week. 81.05-10 maty not surrender.
GMT 3:32 – GBP @ 1.6042 = Buy around 1.6015-25 levels STOPS if 1.5990 breaks. Loking fior tset of 1.6065-70 possibly 1.6095-00

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