EUR/USD: As
long as the EUR/USD stays above 1.2850, it’s a buy. This is a crucial level and
if broken, the euro will take some time to recover above 1.2850. The first
target from 1.2850 is 1.3120 and if that is crossed then the euro could reach as
high as 1.38.
USD/YEN:
Continues to remain a sell. The target is 85 and then 80 agaist the USD. However, at 85 Yen
there is a chance of the Bank of Japan stepping in.
GOLD: Gold
continues to be strong, and if it moves higher than 870, then a rapid move to 1,000,
or even more, can be expected. On the downside, I see gold well supported above 800
levels.
GBP/USD: GBP
has achieved its target of 1.4 and has moved to its next target of 1.36/1.3580.
From 1.3580 I expect a bounce to about 1.4 or 1.42. At that point, I expect the GBP to
continue downwards again to 1.3.
OIL: Has
more or less reached a bottom and can move higher to around $50-55 levels.
Dow: In my
opinion, the Dow is highly oversold now and a move from 7,800 to 8,800/9,000 levels
can be expected. This, however, does not mean that the Dow has found a bottom.
USD/PLN: Has
reached its previous high of 3.3. I do not see the PLN getting weaker. If the
EUR/USD rebounds from 1.2850, I would expect the PLN to move to 3 or even 2.90
against the USD.
For now, here are my currency
targets, but I expect the markets to start moving today.
STG/USD: Buy at 1.5492 –
Target 1.5825
EUR/USD: Buy at 1.2620 –
Target 1.2820
USD/CHF: Sell at 1.1831 –
Target 1.1660
Gold: Buy at 725 – Target
791.50
USD/PLN – EUR/PLN: I expect
USD/PLN as well as EUR/PLN to remain range bound making no new lows,
for now.
All positions should be with
tight stops because if these levels are broken the market will test
previous lows in the case of EUR and STG.
Now about the Dow Jones
Industrial Average. Although
the Dow has dropped in the last two days, I expect it to bounce back tomorrow
and progress to a target of 10,000 in the coming weeks. But this needs
more commentary, which I’ll provide over the weekend.
Disclaimer: Any
opinions, news, research, analyses, prices, or other information provided
by the author are provided as general market commentary, and do not
constitute investment advice. Neither IFB nor the author is liable for
any loss or damages, including without limitation, any loss of profit
which may arise directly or indirectly from use of or reliance on such
information. Investors are advised to consult their broker before making
a decision on buying or selling a particular security, product or currency
pair. These articles are opinions and should be treated as such.
