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Forex Trading: EURUSD gets close to key retracement support and finds bottom pickers

Posted by Greg Michalowski on Wed, 09/03/2008 - 8:39am in

The EURUSD move closer toward the key retracement support from the commentary yesterday (see prior post)  The low today reached 1.4385.  The 38.2% retracement of the longer term move from the November 2005 low comes in at 1.4357. 

Since then the pair has move back above the low from yesterday at 1.4466.  It is at a key level now. Don't be surprised if it dips below the 1.4466 level in the short term to see the conviction of the bottom fishers.  However, A dip below the 1.4437 would not be a positive sign.

Excellent charts an good

Excellent charts an good commentary.

We may have seen Peak Dollar today as the US Dollar failed to move higher as the USD/JPY fell, even though the EUR/JPY fell lower decimating natural resource stocks.

I recommend a purchase of SKF in a trust account along with a short sell of MBI, ABK, and RDN, SCA, MTG, RAM, SUR, and AGO.

And I recommend a small short position in USD/JPY in a Forex account.

And the purchase of gold at BullionVault.com and GoldMoney.com as protection against systemic risk events.

In as much as gold relative to US Stocks GLD:VTI is above 1.15, I believe there is an ongoing investment demand for gold

US Treasuries are no longer a lifeboat of safety as they seem to be topping out -- look for gold to soon arise as the defacto world currency and measure and means of garnering and preserving wealth.

Posted by Richard (not verified) on Wed, 09/03/2008 - 8:26pm
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