Gold broke 890

at 8:55 am ET, Gold finally broke 890. should bring it down to retest 850 very soon.
let say a 50 USD drop within a day or two.

WTI crude still holding at 129. Would crude takes the hint ?

Soon EURUSD may be breaking down again towards 1.5400.

US Treasury has finally shown its hands............

Now US has lost its authority to accuse China of manipulating currencies.

Hence we may see CNY weakening going forth. The reverse of the ever rising RMB has finally begun.

Today 29 May marks a turning point in USD history. It has lost its legitmacy as a World Reserve Currency, as it is no longer a stable FREE FLOATING currency.

29 May USDJPY to challenge 106

USDJPY carry trader trying to make a breakout.

Not an opportune time for Carry Trade to resume, when bank risks are worsening, property prices dropping. Hence USDJPY should not rise much further. 106 should be the cap.

Month ago, in my blog, I mentioned that Banks like HSBC was offering Euro deposit at 4.25% interest p.a. for a 2 months fixed deposit.

Imagine how can they possibly make monies when ECB rate is at 4% ?

Obviously the Banks entice the masses to buy Euro and then they sell Euro into the market, and make the difference when Euro weakens. The Banks are confident of that b'cos after the Washington IMF World Bank meetings, there seem to be a consensus among institutions or Central Banks to allow a stronger Dollar to stall inflation.

However never did they then foreseen Oil to rise above 120-125.

Hence the 1.5800 upto 1.6000 level is heavily defended, as a lot of Institutions Long positions with stops at that levels.

However, it also means there is a Crown Jewel out there for the taking. Whoever can
push it through 1.5900 to 1.6000, has a lot to gain, both in Forex and Equities.

Hence, who would be the Black Knight ?

Shall I call for battle to push Euro to 1.6000, if yes, pls click on the Google Ads.

22 May Euro rose as expected

IFO rekindle the passion in Euro. Would it return to 1.6000, the answer is in my subscription.

email dollarproaragon@hotmail.com

21 May BEAR TRAP ?

want to know more ? you got to subscribe.

19 May It was a bull trap as I forecasted

indeed Bull trap. those who follow my chart, would have got 100 pips instead. A bit tricky though as there was a pike up 1.9630 to clear stops.

Earning quick pips is easy. If you are trading big time, you better subscribe to my letter to hedge your risks.

At least, you know you are trading in the right direction. How many pips you get, is a matter of practice and skills.

Subscribe dollarproaragon@hotmail.com

If you have made monies from my post, click on the Google Ads.

19 May China Earthquake

On the last Monday, when I last wrote, China had its largest Earthquake in history, on a Richter scale of 8.0 . Towns and villages were lost. Massive river get cut off from colliding mountains.

Hundred thousands were either lost or missing.

Hence today, at Monday Easter Time 2:28 am, I annouce 3 minutes of trading halt to mourn the dead. And if you are willing and able, contact your nearest RED CROSS and donate for the cause.

TRADING WISE
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believe it is a bull trap, with distribution on Monday/Tuesday. Gold broke 900 but should fall back again, while Oil may make a large fall towards 100, one more time, before a substantial rise to 150.
Same for Euro to drop again, by no means the end of the long march.

If you want to know more ? subscribe to dollarproaragon@hotmail.com

If you agree that it is a Bull Trap in development, click on the Google Ads.

11 May 2008 Horror Story

Have you watched any horror stories recently ?

While Equities were dropping hard, the Plunge Protection Team met over a weekend in March and decided to call a top in Gold. Gold gap up above 1000 on the Monday morning and drop and never looked back.

Then in April, Rice was surging. The Rice producing nations (Thailand, Mynmmar, Vietnam) met and wanted to setup a Rice Cartel.

All nations central bankers met in Washington over the IMF meeting, and decided on a stronger USD to ward off inflation.

However, to the contrary, Oil bucked its downtrend, and started to surge past 120, now at 125. With calls to 200 Oil.

Now for most nation, other than China and US, a 125 USD Oil is more expensive now, b'cos USD is now stronger against EURO and most Asia currencies.

When all nations thought they can hide behind a strong USD to fight inflation. They actually fan the inflation.

Hence now economists are calling for a weaker Asia economies next year. The effect of the 120 to 150 USD oil would be felt 6 months down the road.

Now, the Asia countries have nowhere to hide.

Isn't it like a horror movie ?

(GBPUSD itself is a horror show, with Bull traps all the way).