The currency moves in recent months have been dramatic and opened up new opportunities. It was only three weeks ago that we stopped using GBP as one of our shorting currencies but the case for buying Sterling has now become sufficiently strong that we have begun establishing a long position. In trade-weighted terms, the currency is at its lowest point for more than a decade and is approaching the low point of the mid 1990s.

GBP is now below its longer term averages versus all of the other major currencies except the Australian dollar. In some cases, the figures are barely significant (i.e. less than 10%) but there are other divergences that are in the range of 15%-35%.

The fact that the currency is weak relative...

Penrich Capital

AbleSys

By Chip Hanlon, greenfaucet - Global Stock Market and Investment Commentary

Interesting precious metals article over at Marketwatch... apparently, people are holding Tupperware-like parties in their homes, but instead of buying stuff, they're selling it-- their old earrings, necklaces and other gold jewlery.

At first glance, I had a similar reaction to the one I wrote about the other day when seeing that CNBC report on the gold brokerage which was doubling its sales staff by hiring out-of-work mortgage brokers: if people are this aware of gold's elevated price, that has to be a sign of a precious metals bull market that is near its end.

But then I thought: wait a second, they're not buying up gold...

greenfaucet.com

EUR/USD - Euro Dollar
1,2716. EUR USD is in an downtrend directed by daily exponential moving averages. The volatility is high. Bollinger bands are parallel and form the trend. ForexTrend daily (Mataf Trend Indicator) is in a bearish configuration. 4H ForexSto (Modified Stochastic) indicate a bearish pressure on EUR USD. The downtrend should continue to gather momentum. The price should find a support above 1,2400 (316 pips). => We could take a short position at 1,2770. We will put the stop loss above 1,2890 (-120 pips). The targets are 1,2580 (+190 pips, risk/reward 1:1.6), 1,2400 (+370 pips, risk/reward 1:3.1) . Each trade is dangerous, take care and put your stop loss. Trade configuration (1 Speculative -> 4 Trend following):...

Mataf

Bias: While 99.05-13 caps I look for a break below 97.40 to extend losses to 96.56 and probably 95.93

There was no break of 97.40 but also not of the 99.13 resistance. Thus while this remains the case I suspect that the strong risk today is lower. We shall need to see a break below 97.40-74 and once this occurs look for losses to extend down to 96.56 at least but I feel the great chance is for stronger losses to 95.93. Take care there as we could see a correction. Below 95.93 sees next support at 95.29 and then all the way down at 94.24 and 93.82-03.

For full analysis please open today's full report in PDF format.

FX-Forecaster.com