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Gold & Euro to gain – GBP to Struggle – Aug 27

August 27, 2013
Once again in thin market condition it was another slow Monday, which is quite normal during summer period, as Jackson Hole had very little to offer. Later in the day release of notorious durable good order fell sharply to 7.3 pct in July due to fewer commercial aircraft and military goods order. Notorious because durable goods order is subject to revision in big numbers. Since the drop is caused by thin order for planes in July, I think this is not be a taken too seriously as overall slowdown should not impact manufacturing sector in a big way.
Meanwhile, Europe is once again in the limelight, as we approach German election due on September 22. Greece could become an itching factor, as it may demand for more aid money. Berlusconi factor too could unsettle the current European stability if he is thrown out of parliament on tax charges. This is what Italian stock and bond market suggest.
During the day market will take clue from the release of German IFO data that may set the pace, which could provide support to the recent economic gains. Further in USA, a possible disappointing consumer confidence number may not help US Dollar to make gain unless it turns out to be surprise positive number, which means some more US bond yield recovery But do keep an eye on Syria as the pressure of military action is mounting that could always give jitter to the market, which means gold and oil could be the beneficiary.

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GMT 2:53 – GOLD @ $ 1396.70 = Gold will find support around $ 1388-90 and possible break of $ 1406-08 is likely to pave way for a test of $ 1418-20 levels or else $ 1384-85.
GMT 3:01 – GBP @ 1.5568 = I am expecting Cable to hold below 1.56 for a possible dip to test and break 1.5520-30 for 1.5490. A break of 1.5635 will encourage for a bigger move towards 1.5720-40 zones.
GMT 3:07 – EURO @ 1.3372 = Euro has good support around 1.3345-55 levels. Should hold a for a move towards 1.3420-40 zones. Break of support levels will encourage for a test of 1.3310-15 levels.
GMT 3:14 – JPY @ 98.24 = Trading could be choppy due to quite a few external factors. Levels to watch is support at 97.80, which should hold for test of 98.60-65. Failure to move beyond 98.90 risk for another drop. If support break move beyond 97.50 would risk for 97.20.
GMT 3:18 – AUD @ 0.8983 = Keep a close watch on support 0.8950 if hold we could see another test 0f 09025-35 zones or else drop could extend up to 0.8910-20 zones.


Inter-action with my Subscribers during the day…..


7:29 AM    GBP @! 1.5525 = Book your profot around 1.5517-25 ….Cheers
7:50 AM     JPY @ 97.82 = Book your profit around 97.75-82………………….Cheers
7:53 AM    AUD @ 0.8944 = Could dip to test 0.8910-20 zones. However, suggest taking profit……………..
 8:07 AM    GOLD @ $ 1408 = Book your profit around $ 1408-10………..Cheers
8:09 AM      EURO @ 1.3347 = Could dip to test 1.3325-35 zones before up……….
 8:12 AM     GOLD @ $ 1412 = Should hold around $ 1415-18 for a test of $ 1408 or else $ 1422…..
8:20 AM     EURO @ 1.3328 = Buy around 1.3322-28 = Stops 1.3280………
11:15 AM      GOLD @ $ 1414 = if long book your profit around $ 1415-18, but short is not recomended. Wait for next signal…………..
 12:40 PM   sir what about gold now!!
12:42 PM     $ 1415-26
1:29 PM       hi sir,   Where to close EU long ?    Thanks
1:35 PM      EURO @ 1.3375 = Well, if you wish you can take profiot around 1.3375-85 levels, but I I still see more gains for EURO as target 1.3420-40 is intact, as consumer confidence number should be short of target because of recent poor data. Though German IFO was better, it is the Syrian factor that supported US Dollar…..
2:00 PM     Sell gold buy usd
2:01 PM     Gold sell around $ 1420-22 Stops $ 1428………
 2:03 PM     JPY should pause around around 97.10-20……….
2:41 PM    sir due to syria issue gold looking strong.. do u see breakage of 1430 today??
2:43 PM      if Syria is attacked…….but I don’t thing so………
@ $ 1420 risk is $ 1455 up & $ 1350 down………….
2:50 PM      risk is up should square position ?
2:51 PM      gold?
2:53 PM    Before I leave I always recomend closing all positions. Today is no different…………………..
3:00 PM     Ok pals, end of another excellent day………
Square all positions or trade with discipline.
Cheers until tomorrow…………………….

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