October 2011

EURUSD’S rise from the 2011 low of 1.2873 is complete at 1.4939 as weekly prices sustained below 1.4150 thus witnessing further decline towards 1.3662 downside target. (see September 2011 update).  Weekly prices have subsequently opened and closed below 1.3662 thus reaching our next  target of 1.3360.  Look for a daily open and lower close below 1.3360 to confirm further downside extension targeting1.3261, 1.3159 while a weekly open below 1.3361 and lower close targets 1.2873, 1.2385 and 1.2083 into the weeks ahead. ONLY a weekly open and higher close above 1.4095 will turn the broad outlook to neutral.

Spot Gold reached has reached 1,920 thus far in 2011, just above my 1, 915 target sited in my January 3, 2011 update. The rise from the 2011 low of 1,308 is now complete at 1,920 as prices have now moved within the 1,542-1,686 consolidation zone.  As to the outlook for the week’s ahead, look for a sustained break of the 1,542-1,686 consolidation zone to witness further price extension in the direction of the break with an upside break targeting  1,772,  1,829,  1,920.  2,012,  2,068 and 2,160 in the weeks ahead while a downside break of 1.542 targets 1,452, 1,308, 1,163 and 1,074.