September 2011

EURUSD’S rise from the 2011 low of 1.2873 remains active as ONLY a weekly open and lower close below 1.4150 will complete this rise while 1.4939 limits the upside.  A weekly open and lower close below 1.4150 will favor further downside extension within a 1.3662-1.4150 zone before another attempt to the upside. My outlook still favors an upside break with the 2009 high of 1.5143  as the medium term objective while 1.3906 holds.  The  broad outlook remains within a descending channel formation as this consolidation pattern favors an upside break in the weeks ahead.  For the month ahead, look to set longs while 1.3906 supports for 1.4518, 1.4679, 1.4939, 1.5143, 1.5360 1.5490 and 1.5620 in the months ahead.

Spot Gold- My January 3, 2011 forecast was to buy spot gold within the 1,294-1,326 zone  for 1,726, 1,815 and 1,904 targets.  The 2011 low comes in at 1,308, right in the middle of my buy zone as prices should continue higher in the weeks ahead with 2,044 as the objective. However, ONLY a weekly open and lower close below 1, 618 will turn the outlook to neutral while the 2011 high of 1,913 holds.