Intraday Market Thoughts

Archived IMT (2010.09.24)

by Ashraf Laidi
Sep 24, 2010 10:59

SILVER FINALLY HITS A NEW RECORD HIGH, taking ion its March 2008 record of $21.35 per ounce as it attains $21.35, while gold touches $1298. The Gold/Silver Ratio pulls back to $61.15, falling below its 200-week MA. On Sep 3rd, Ive argued the case for Silver outweighing Gold in this article I continue to see any Chinese tightening (especially in the form of hiking interest rates and not raising the reserve rate requirements) as the only fundamental news likely causing a pullback in precious metals. If that would be the case, traders could see this as an opportunity for fresh metals buying onto $1355-60 and $24.00. EURUSD regains $1.34 after further gains in the IFO surveys Climate and Situation Indices, which rose to 106.8 and 109.7 respectively (highest level in over 3 years), but the Expectations index did decline to 103.9 from 105.2. IFOs economists said the demand is largely demand-driven. US durable orders and new home sales are due today, with the latter the more important mover, exp +6.9% from -12.4%. EURUSD extends further above its 200-day MA of $1.3210 and is set to end the week above the MA for the 1st time since January, which is an important technical development, bolstering the case for $1.35 and even for the possibility of $1.38, which could be the medium target for the REVERSE H&S formation.


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