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Why should Japan worry about currency war ? Draghi in Hot water ! Jan 29

January 29, 2013

LATE UPDATE…………. Twitter  @asadcmka

GMT 7:45 – GOLD @ $ 1664 = Book your profit around $ 1664-66…Cheers|
GMT 7:46  – AUD @ 1.0453 = Book your profit around $ 1453-58……Cheers
GMT 8:58  (C) eur@1.345, view unchanged
GMT 9:13  – yes,View is unchanged. I do would rather wait and avoid trading in Euro and prefer to watch from outside as an spectator………..Cheers
GMT 10:17 (C) sir where to go long gold again??
GMT 10:20 – GOLD @ $ 1662 = Could hold below $ 1664-65 for $ 1656….
GMT 14:36 – EURO @ 1.3486 = Saw a bounce back from 1.3414 missing target by whisker. Should find to around 1.3495-00 for aanother drop STOPS 1.3525
GMT 14:38 – GBP @ 1.5748 = Book your profir around 1.5748-55 and sell ariound 1.5760-70 zones STOPS 1.5795..Cheers
GMT 14:39  (C) sell gold 64 noe 65 above should hold for 56 now sl
GMT 14:42 – Well, you have to decide your STOPS. $ 1666 is crcucal though could stretch towards $ 1668 before making another test of $ 1660-62
GMT 14:48 – JPY @ 90.69 = After hitting 90.40 comfortably, we are witnessing small bounce back. This rally coul extend uoto 90.85-90 before exhausing for for another Yen gain. STOPS if 90.20 breaks
GMT 14:52 – GBP @ 1.5765 = Sell around 1.5665-73. STOPS 1.5795
GMT 15:03 – While taking POSITION/TRADE, do not wait for guidance for each and every move. If you are not comdfortable or do not agree with me do not take forced a Position.
While taking a position please decide your STOPS.
When you start the day book quick profit on your 1st trade instead of taking big risk because after booking early profit you take position with a big heart. But disciple is the key. Do not breach STOPS
Some of you are still too complacent. Please act quickly if the move is against you. Thanks
GMT 15:06 – Ok pals, it has been another profitabe day. Did catch the trend correctly



GMT 3:39 – EURO @ 1.3455 = There is lot of talk about currency war, but look who is talking about currency war. USA that has so far injected trillion of US Dollar to support its economy, Europe that too has injected over trillion Euro to save Euro-zone from collapse or Switzerland that has pegged its currency against Euro to protect it’s country’s export or China that does not care about what the world has to say. So why should Japan be bothered about adopting similar strategy when its economy is suffering from decade old recession and deflation. I think Japan has learnt a lesson and should not be much worried about what others have to say until it’s economy is back on track and if its economy starts to respond, this could mean that world could see weak Yen policy for  longer period of time.

 Monday was a quiet day with traders mood mildly tilting towards US Dollars, as Euro could not make further gains in the absence of any positive news from Europe. Notorious US durable good number of 4.6 pct that was far better than market expectation of 2 pct helped market sentiment to think positive about the US economy, which is gradually picking up though pending home sale was less impressive. Fitch announcement that USA may not loose its AAA ratings after reaching an agreement on US debt set the tone positive.
 Meanwhile, Euro lovers watch out, there are reports of Italian banks getting involved Derivatives Secret Derivative Transaction involving a Italian and German banks. The purpose of the deal is not confirmed as yet, but there is a risk that one person that could be testified is the Magician Draghi’s because he was the head of Bank of Italy from 2006 to 2011 and the act did happen during that time. So Euro could be suspect today.
Euro @ 1.3455 = Sell Euro around 1.3456-65 STOPS 1.3495. Break of 1.3410 will see test of 1.3375 or further fall is quite possible
GMT 3:59 – GOLD @ $ 1658.70 = Today I am not comfortable selling gold unless fall below $ 1650-52 zones, as see risk for a bounce back from around $ 1655 for a beak of $ 1665 for possibly $ 1670-72 zones
GMT 3:53 – AUD 1.0430 = Bias on upside and should hold around 1.0405 for 1.0450-60. Stops 1.0370
GMT 3:47 – JPY @ 90.96 = Though bearish for Yen in long-term, but the Japanese currecy could correct today if it hold below 91.20 for 90.40 or possibly 89.95 Or esle 91.50
GMT 3:44 – GBP @ 1.5698 = I will prefer to buy with STOPS if 1.5640-50 surrenders for 1.5735 or 1.5765. I will not be surprised to see sharp correction agaisnt Euro in crosses
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