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Gold to Drip, Euro will Slip, but JPY will Flip – June 26

June 26, 2013

After last  week’s monetary policy announcement, so far it happens to be a good start for the US economy, as barrage of economic data reaffirming FED’s believe that the economy is on the right track. According to various reports on housing sector the growth pace is very encouraging. The confidence level of consumer is at the highest level. Notorious durable goods order surging for 2nd straight month suggesting activity in manufacturing sector, which was caused by large orders for aircraft. It all helped US bond yields to surge and 10-US bond yield is comfortably above 2.5 pct at 2.60 pct strengthening FED’s view on tapering.

However, we could see stability in the market after Chinese market getting some support from authorities that liquidity is manageable and can be controlled. But nervousness is still there as uncertainty continues to loom about weak banks in China. Asian stock market is sitting on the edge though not in red, closing could matter and that will provide further hint to Europe.

While, gold is melting in Asia. Normally it is buyers market, but Chinese and Indian economic indicators does not show too much love for gold. Banks and hedge funds have started to join the bandwagon and now loud chorus can be heard that outlook for gold has been cut, which means that tilt towards FED tapering is on the rise. Gold has nicely broken my yesterdays target and has comfortably plunged below $ 1260 levels. I still have no liking for Yellow metal that will continue to find selling interest on the rise.

Twitter for Currencies & Gold        @asadcmka

GOLD @ $ 1255= Gold has support around $ 1245 and failure to break below could see minor correction in Asia to around $ 1262-65 zones, as I am expecting bounce back from $ 1249-52 zones. Prefer picking the top around $ 1267. Or esle $ 1220. Keep watching the post.
GMT 2:56 – EURO @ 1.3077 = As long as 1.3120-25 holds, we could see a move towards 1.3050 or 1.3030, but needs to fall below 1.3005 for test of 1.2985-90 zones.
GMT 3:00 – GBP @ 1.5415 = Cable needs to move beyond 1.5460 and may struggle to move beyond for a test of 1.5370-75 zones. A fall below 1.5320 will open gates for bigger fall, which should happen today.
GMT 3:01 – JPY @ 97.82 = Only move above 98.20-25 would encourage for test of 98.40-50 zones. See risk for a fall if 97.40 breaks for 97.05-10.
GMT 3:06 – AUD @ 0.9242 = Aussie has support around 0.9205 and only break risk for 0.9170, as see potential to make gains towards 0.9290-95, break will encourage for a test 0.9320, but trend remains downward

Interaction with my Subscribers during the day…………

3:01 AM   GOLD @ $ 1246 = Do not buy Gold now………….
3:06 AM  AUD @ 0.9242 = Aussie has support around 0.9205 and only break risk for 0.9170, as see potential to make gains towards 0.9290-95, break will encourage for a test 0.9320, but trend remains downward.
3:32 AM     GOLD @ $ 1247.50 = “WARNING” GOLD could potentially PLUNGE to test $ 1210-20 zones…………if fails to move beyond $ 1255
3:46 AM  GOLD @ $ 1249.50 = Book your profit around $ 1249.50-52……….. 7:47 AM  sir shall go short aud around 0.93-10??
 8:01 AM  GOLD @ $ 1238 = Either take profit or around currenct levels or take chance for $ 1201-20…………Cheers
8:02 AM  I mean $ 1210-20………
 8:47 AM   GBP @ 1.5377 = Book your profit around 1.5372-77………Cheers
9:35 AM   gold 24 view unchanged book 10 20 under
9:36 AM   Yes, hold and take chance……………………
10:28 AM    EURO @ 1.3018 = book your profit around 1.3012-18……Cheers
12:36 PM    sir what about gold after us data!!
 12:59 PM   GOLD @ $ 1244.30 = After poor data gold could see smaoe correction and hold around $ 1240 for test of $ 1255-60 zones. Unless fall below $ 1234………..
 1:14 PM   GOLD @ $ 1244 = I still do not recomend gold buying at theese levels as gold will drop again……………..
 1:50 PM   AUD @ 0.9335 = Boo your profit around 0.9335-40…..Cheers
2:54 PM   OK pals, I am expecting Euro to hold around 1.2990 with Stops 1.2960, for 1.3050, but needs to break 1.3060 for more gains or elese may ease.
GBP view is unchnaged as 1.5320 support should hold.
GOLD if hold around $ 1220-25 levels we see a push towards $ 1255-65……..


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