Asad Rizvi
Finally FED has given its verdict in favour of reducing its asset purchases and did not succumbing to external or Dovish pressure, as it had decided to do away from extremely easy policy that was implemented in 2008 after the financial crisis. Some of the interesting points worth noting is that recently much talked about subject inflation, which is below the target level of 2 pct did not bother FED much, as it did mention in its text of the statement that they expect inflation to remain around or below half-percent for next one to two years, so low inflation should not be matter of concern for reasonable period of time.
Apparently from the FED statement it appears very clear that it will target labour market to further improve job conditions through economic growth and it is encouraging too that the FED members sees risk to the outlook for economy and labour market looks balanced. This also means that future FED action will largely depend on US economic performance.
Tough USD 10 billion may be token or modest amount in size, but the move has began and market now knows that FED will be done with its QE program Next year (2014). It is worth nothing that Janet Yellen in past considered very Dovish is no more only a voting FED member, as she has a responsibility and has bigger role to play. There was against vote that did not matter.
Another key point to note is that it's benchmark unemployment remains 6.5 pct and is not lowered as market was guessing prior to monetary policy announcement.
It is still early to digest or have full grasp of FED's overall move, as market may take some more time to analyse the pros and cons, but for guidance the immediate best indicators could be the behavior of emerging market, 10-years US Treasuries and Stock market.
GMT 3:30 - GOLD @ $ 1220 = After last night FED's move gold is set to fall and test new lows next year. Struggling Bears may may to push is higher, which should be good opportunity to sell gold.
I am expecting gold to hold below $1232 levels and therefore sell on up moves for $ 1210-12. Break will encourage for a test of $ 1204-06 zones and a push towards $ 1187-90 could be a good possibility. Or else $ 1240.
GMT 3: 35 - EURO @ 1.3655 = Euro needs to move beyond 1.3690 for 1.3720 or else risk for a test of 1.3590 will increase on break of 1.3615.
GMT 3:40 - GBP @ 1.6370 = Cable is still a hard nut to crack and bias remains on the upside, It has support around 1.6330-40 zones, break of 1.6395-00 will likely to challenge 1.6425-40 zones. or else 1.6300-10 before up.
GMT 3:45 - JPY @ 103.97 = Needs to break 104.35, which could be tough for a test of 104.-80-90 zones. Failure to ease will push Japanese currency towards 103.55-60 before it further weakens.
GMT 3:47 - AUD @ 0.8828 = Aussie could hold around 0.8750 levels for minor correction, but may find resistance around 0.8850-60 or else 0.8720.
DISCLAMER : The commentary/information presented is not intended for trading purpose. The idea is to exchange views with the members/readers. Therefore, I accept no responsibility or liability for any losses incurred due to position taking.
GMT 3:30 - GOLD @ $ 1220 = After last night FED's move gold is set to fall and test new lows next year. Struggling Bears may may to push is higher, which should be good opportunity to sell gold.
ReplyDeleteI am expecting gold to hold below $1232 levels and therefore sell on up moves for $ 1210-12. Break will encourage for a test of $ 1204-06 zones and a push towards $ 1187-90 could be a good possibility. Or else $ 1240.
EURO @ 1.3655 = Euro needs to move beyond 1.3690 for 1.3720 or else risk for a test of 1.3590 will increase on break of 1.3615.
ReplyDelete
ReplyDeleteGBP @ 1.6370 = Cable is still a hard nut to crack and bias remains on the upside, It has support around 1.6330-40 zones, break of 1.6395-00 will likely to challenge 1.6425-40 zones. or else 1.6300-10 before up.
JPY @ 103.97 = Needs to break 104.35, which could be tough for a test of 104.-80-90 zones. Failure to ease will push Japanese currency towards 103.55-60 before it further weakens.
ReplyDeleteAUD @ 0.8828 = Aussie could hold around 0.8750 levels for minor correction, but may find resistance around 0.8850-60 or else 0.8720.
ReplyDeleteGOLD @ $ 1222 = wait to pick top to sell around $ 1225...........
ReplyDeleteAUD @ 0.8850 = Aussie could make another 15-20 pip gain. Allow the move and pick top to sell with Stops Loss 0.8910..........
ReplyDeletesir shall go short euro at 1.3686!!
ReplyDeleteEURO @ 1.3685 = Book your profit around 1.3685-90 and pick top around 1.3695 to sell with Stops Loss 1.3735............Cheers
ReplyDeleteGOLD @ $ 1215 = Hold you gold sale around $ 1225..................
ReplyDeleteKeep selling levels Stop Loss & take chance for the next move............
Sir go short in AUD at current levels?
ReplyDeleteYes Safil, no change in View.....................
ReplyDeleteGOLD @ $ 1207 = Ok book your profit around $ 1205-07.......Cheers
ReplyDeleteSir Amazing Gold Rally. Truly Enjoyed It
ReplyDeleteCheers....
GOLD @ 1203 = Risky but should hold $ 1195 for small correction...............
ReplyDeleteGOLD @ $ 1201 = If you want to take chace buy around $ 1198-00, with tight Stops @ $ 1194.........
ReplyDeleteNot taking Chance. Will wait for your next Gold Signal
DeleteThanks
GOLD @ $ 1206= Book you profit around $ 1206-08..............Cheers
ReplyDeleteGBP @ 1.6377 = Likley to struggle to move beyond 1.6385-90 levels, as we have seen top around 1.6398, break of 1.6340 is required for deeper fall or esle 1.642025 before down again.........
ReplyDeleteThis comment has been removed by the author.
ReplyDeletePlease refesh page. I have already given sell signal around 1.6385-90. with stops if 1.6420-25 breaks. Did you sell ? What else do you want to know !!!!!!!!!!!!!
ReplyDeletesorry sir didnt refreshed.. yes shorted at 1.6380..thankyou :)
ReplyDeleteThere are couple of development that does not favor US Dollar buying right now, which could further weaken if US data disappoints.
ReplyDeleteEuro @ 1.3680 = may hold aound around 1.3650 for test of 1.3715-25 zones. Prefer long Euro...........
GBP @ 1.6277 = may find hard to break 1.6240-50 and could inch up towards 1.6110-20
AUD @ 0.8865 = may hold around 0.8840-50 for test of 0.8880-90
JPY $ 104.08 = may test 104.35...........
So watch out and SUGGEST closing all Long US Dollar Position.
"CORRECTION"
ReplyDeleteGBP @ 1.6377 = may find hard to break 1.6240-50 and could inch up towards 1.6410-20
Next in gold any selling level or wait
ReplyDeleteDear manish, take is easy you have a bad habit of jumping all the time that forces me to make unnecessary post.
ReplyDeleteI always make best effort so that you and others end up making money. If I do not reply to your query that does not mean that I am sitting idle.
I actually wait for opportunity to enter into a trade so that you do not end up in loss.
So please be patient and let NYK settle down as it is still day one for them
Best Regards
Asad
Take profit around
ReplyDeleteEuro @ 1.3752-58
GBP @ 1.6260-65
AUD @ 0.8840-45
JPY Profit should be takem around 104.35-42............
ReplyDeleteView Unchanged. US Dollar slightly weak.........
ReplyDeleteGold may hold $ 1200 for $ 1210-12..........
LONG JPY around 104.22-28. Stops 104.45
ReplyDeletesir what abt gbp and euro now!!
ReplyDeletePleasev refresh page...................
ReplyDeleteHold on do not sell Gold.................@ $ 1203
ReplyDeleteGOLD @ $ 1203 = If holds $ 1205-07 could be haeding for $ 1187-89 on break of $ 1197........
ReplyDeletePlease give a final signal if gold $1205-07 holds
ReplyDeleteSell @ 1203 = Stops $ 1206.......
ReplyDeleteJPY @ 104.22 = Avoid Long JPY as 10-year bond yield has hit 2.95 pct, which means JPY should weaken...................
ReplyDeleteGOLD @ $ 1200 = need to break $ 1997 for $ 1990 or else $ 1208-10. T ime to decide, its your risk as I will be leaving soon.....
ReplyDeleteOk pals, market is still unsure about the direction.
ReplyDeleteHowever, though small profits were booked but the good part is that no loss was booked.
Cheers until tomorrow.............
boo profit around 1190 any more slide for today
ReplyDeletemanv, please book profit....
ReplyDeletetomorrow will be a new day for you. GL