Deja Vu, All Over Again EURUSD

Written By: Pauly  @SPZ_Trader

Thursday is ECB day (European Central Bank) and should be interesting as far as “price action” goes for the Euro.  The recent nosedive with nary a pull up on the stick ominously reminds me of last December (2015) when the euro could not find a bid to save its life.  With that thought I am reminded of the infamous Yogie Berra line, “its Deja Vu, all over again“.

Last December, I remember calls of Euro at 102, par, 98, and beyond. The market expected an announcement of Quantitative Easing. Mssr Draghi did not disappoint.  Only problem was just that, “everyone expected“, so there was no one left to unload the goods to on the announcement. The euro commenced to make a new marginal low, and then took off like a scalded dog rallying more than 350 pips in the same session.

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Gold how low in the short term can we go?

Written By: Pauly Franco, Twitter: @spz_trader

With today’s release of FOMC minutes the market expects a “hawkish” tone among the notes. With those expectations the dollar is moving higher as the case for Central bank divergence begins to resonate.

Last week we saw Gold take a true beating as it has failed to spark upward price movement despite the advantages of Central Bank Quantitative Easing galore, Brexit, political unrest, and the list goes on & on.

So, we find ourselves wondering how low can it go after a $65 dump from 1313 area I pointed out last Tuesday ( mini tweetstorm) for the market to “go down like a submarine”.  Well, lets look at the 2-hour chart. We have what I believe is a range extension of the June to September prices which suggest at target of 1239 which coincides with 1239 “bias pivot”. An overshoot to 1230 is quite possible.  The market has been quiet for the last two days as it appears we have knocked some longer term bulls out of the ring.

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