This week, FED did exactly the same as last time. But last time they made a big spike above 1.10 and this time it was above 1.09. Both times there was a big reversal afterwards. This time everything looks the same, but that doesn’t guarantee anything, of course. Normally, I would think it could go both ways early next week, but luckily, Jim Cramer offered us his “helping” hand. He says Deutsche Bank is safe and well…which means a disaster is coming soon. Waiting for bad banking news from Europe any day now. lol
Now on a more serious note. Technically, both EU and GU should retrace some more…EU could even re-test the 500-550 area and there would be another important test, if it breaks or not. I am confident we will see 850-900 again, too…so the question is which will come first…if we go towards 500 and bottom there, I will target the 900 area afterwards. We need to wait on how the week starts and if anything happens over the weekend, to provide some substantial opening gap.
The thing that helps the above case are CHF and Gold. UCHF is finishing a strong bottoming, so I am expecting a big spike up anytime soon. That would help EURO bears, too. Gold made a few attempts to get above 2000 this week, but all failed. I have a feeling that only retailers are buying it around 2000 and all the big boys are selling. So Gold is a short for me, too, for the time being.