Zeev's Turnips Patch-No Politics (ZEEV)

[rossi]

Euro' impact on POG in the nearterm
by: Casual_Techwatcher 10/28/04 02:14 am
Msg: 453764 of 453813

From 10/12's closing @12317, Dec Euro rallied 9 days in a row to the recent high @12794, gaining a total of 477 points. In the subsequent 2 days of retreat, Euro gave back 92 points, or merely 19% of the runup to a close @12702 on 10/27. Given the super strong momentum breaking out of its 7-month triangle, Euro should be at the early stages of a major rally. Occasional profit-taking is to be expected along the way.

In the very short term, if history is any guide, it would be difficult to get a 3-day down on Euro. In other words, Euro might have reached a short term pullback low on Wed or by early Thu, and the rally would resume, aiming at above the 12800 level.

As POG's profit-taking on Wed was induced by Euro, a resurging Euro in coming days would likewise lead POG to higher levels, aiming at breaking above the 430 fixing level, and the 433 Dec gold.

JMHO
Casual Techwatcher
10/27/04