EU formed a nice bullish engulfing pattern this week and to me EU is still bullish and about finding good spots to buy. All you hear lately is about tapering and how EU is supposed to be dumped once FED finally starts with it. But people are forgetting that the talk about it is going on for months now…and it seems to be fully priced in, anyway. And the funny thing is…it might not even start so soon…so all this taper hype might fade very quickly and leave EU bears trapped for weeks or months to come. Next week is important for several reasons, its the end of the month on tuesday and we’ll have big US news on friday, some on wednesday, too. So it might be good to wait for the monthly close, to have a better idea whats going on and what are the good spots to enter a trade. If you are bullish or bearish, first 2 days of the week might be tricky to trade. The safest bet will be to wait until friday, when the chart will be surely much easier to read. But I expect a support zone to form around 1750-60 on EU. 1800 is a very important resistance to break…it opens up the way towards 1900.
Gold keeps to be bullish as expected and its very near 1830, which is a big resistance, which failed to break many times in the past few weeks. Once it breaks…it opens up a way towards 1900.