Gold was able to breach 1780.00 level followed by daily close above it, and this factor closing is very positive factor that solidify the expected upside trend on the short term basis.
The pair succeeded to breach above the 1.3000 level settling above it with daily close, which provides us with positive factor that supports our bullish overview.
The EUR USD continued to fluctuate around the key level 1.2910, closing near it yesterday, while Stochastic keeps heading north on the daily time frame.
The pair closed yesterday's trading above 1.2910 level providing positive signal that supports our bullish overview, noting that today's opening was negative to move below the mentioned level.
EUR USD continues to fluctuate around 1.2900 level, closing yesterday below this level, but we can notice the positive signs on Stochastic on the daily time frame, accompanied with good support coming from EMA50.
Overview and Observation;
The latest victim in the ongoing global debt crisis, Spain, has emerged as even more problematic than Greece or Portugal. Spain has finally requested a bailout for some of its banks. While Mario Draghi continues to "assume" highly vocal, that the ECB can "fix" the problem, he neglects the facts. There is not enough money to bail out the various countries that are on the verge of default to prevent one or more from actual default in our opinion. The ramifications of default on debt is what the ECB, and the IMF as well as the U.S. Federal Reserve, are concerned about. The implications are global and would be devastating to the international financial structure. If lenders do not lend, growth not only stalls, but reverses and puts us back in the throes of recession. The term "too big to fail" should not be a consideration when assessing the status of international debt. The truth of the matter is simply that some countries do better than others and to "bunch" them all in a common currency, in our opinion, has been a mistake from the beginning. We fully expect the ongoing debt crisis to impact the overall structure of the Euro. The riots we are witnessing in countries where without austerity no bailout will occur, is expanding as the people show no allegiance to their country but only to themselves. I expect France and Germany to balk at any bailout if those countries experiencing "worker revolt" do not comply with their austerity requirements. The ongoing U.S. labor situation is mostly ignored in as much as a weekly job loss of over 360,000 as exemplified by the Thursday first time unemployment number far outweighs the administrations claim of job "creation". As I have stated in previous commentaries, the U.S. media continues to favor one party over another and the "facts" are being "mutilated" to a significant extent. We will await the results of the first Presidential debate scheduled for Wednesday evening in order to draw some conclusion as to the direction of the U.S. going forward. For now we are witnessing a "hesitation" by the investing public to commit to one or the other "vision" for the future. Now for some actual information ................
Gold found strong ceiling at the 1780.00 barrier that we still waiting for clear breach above it, as the price was forced to bounce down heading towards the main upside trend line located now at 1748.00