Stabilising XAUEUR & Sequester Watch

Before we shed light on the sequestered payments it's worth noting Gold vs EUR, which appears to show signs of stabilization. The key level to watch is € 1239-40/oz, a break above which would signify further challenges for EURUSD but not necessarily a positive for Gold vs USD.  As no deal appears to be reached in Washington, the $85 billion sequester in is expected to kick in: A combination of sharp reductions in defense and non-defense spending, accompanied by 750K to 1 mln in lost jobs for this year. And even if the deadine were to be missed, there remains a possibility for Obama & Congress to hammer out an agreement later this month. In the meantime, markets are busy aplauding the positive US data as of late. CORRECTING the early IMT, both of yesterday's EURUSD shorts hit their targets after they were adjusted at 14:15 GMT. The 2 longs are now in progress. This makes for 9 Premium trades hitting all targets. 1 EURJPY short was stopped out. In our next Premium edition, we will shed more light on the latest selloff in the euro and to what extent it is expected to continue or consolidate. Interestingly, we are seeing JPY resuming its losses as stocks applaud the US data and the possibility for further gains in indices alongside a neutral to strong USD.