GAFNN.com Blog

AUD USD pair settled below 1.0300 level yesterday closing to the first main target waited around 1.0215, while opening today's trading with positive bias attempting to retest 1.0365

More tight range trading dominates silver price in the past days, as trading remains settled above the main breached resistance that turned into support now at 30.05

EUR USD pair is trading around the retest level of the previously breached resistance that turns to become support now at 1.2525, while Stochastic keeps providing us with positive signals on the daily timeframe.

Overview and Observation;

The ongoing rhetoric from various heads of State referring to their "implied" resolution of the European debt crisis continues to confound those of us who recognize that no amount of money can resolve this situation. While we await the latest "meeting of the minds" to take place this week in Jackson Hole Wyoming, we are continually "bombarded" with statements by U.S. Fed Chairman Bernanke and European Central Bank head, Mario Draghi, that they will do "whatever it takes to support the Euro countries". One must ask how is it possible to restore confidence when certain countries cannot service their current debt load and give them more money, ask the banks to support their action and take losses, and expect to resolve the " gangrenous condition" that has spread throughout the European community. When "gangrene" is "detected" in a "limb", that "limb" must be removed. Such a condition, we believe, exists within the Euro community and as I have stated in prior commentaries, any currently discussed or 'claimed" solution is tantamount to "throwing money down a well". Markets will determine the effectiveness of any proposed solution and the current climate shows that markets "expect", although "irrationally optimistic", in our opinion, a solution to all the Euro country problems. We totally disagree and would suggest investors re-examine their positions to determine the "survivability" of individual investments and take the necessary action to protect capital. Now for some actual information to hopefully assist our readers in making specific market decisions.......

Interest Rates:

October Natural gas has been in a contained within a 2722 to 2889 balance bracket for the last 12 trading days.  When a volatile market such as Natural Gas is contained to a relatively tight range for a period of time, a significant move usually follows when the market finally breaks from the balance bracket.

On Monday 8/27, Natural Gas broke below and settled below the 2722 balance bracket low.  If the market remains below 2722, we could see the downside move continue with an important reference of 2515 within reach. However, if the market gains acceptance back above 2722, it may begin a rotation back to the 2889 top of the balance bracket.

Possible Scenarios

GBP USD pair dropped to retest the previously breached horizontal line at 1.5765, while Stochastic enters the oversold areas now.

The EUR USD traded in tight range yesterday, these tight trades is driving Stochastic to gain positive momentum as its closing gradually from the oversold areas on the daily timeframe.

Dow Jones index succeeded to build good support base above the psychological level of 13000 to turn to the upside and resume its bullish trend as shown in the image above, while Stochastic provides us with positive signals support our bullish overview on the intraday and short term basis.

Silver price was able to confirm the positive closing above the main resistance level that was breached previously –shown in the image above-, and this supports the expectations of resuming the expected upside trend in the coming period, while our waited target start at 33.20 followed by 34.00

Gold succeeded to continue gaining surpassing the 1655.00 barrier and going closer to the next target around 1670.00, while we still wait for the main target of this week near 1700.00.