FX Department

$Majors: Knee-Jerk Wave Before a flaxen Explosion

          The euro has been squaring positions in a narrow band for the last 2weeks, screening almost 2figures only. The psycho-band150 is a tough play to be tradable and only a close back above 15012 ensures an uptrend formulation, which, sooner or later, it would happen as Gold is skyrocketing towards ForexSurvivor Long Term Target @1200.

EURGBP is aiming long term @ par, thus one can reason that a weekly above 9000 is sufficient to produce parity within less than 4months. You can sustain a signal on the buy side once a close above 90 is triggered targeting at least one figure for now, and an exit of the bullish stance should be hooked if the price action re-fall the cliff below 8932.

USDCAD is vis-à-vis 10700band again and tough bands are expected to be sorted out again, the first is on a close above 10700 and the 2nd above 10805. Once the price action achieves a weekly close above the bi-band then CAD weakness would face a severe capitulation where usdcad target becomes no less than 113 near term & ahead of year end. Once you ride that wave, make sure you do not anticipate a weekly close below 10700 to keep the bull prospect onto working effect.

Worst-Case Debt Scenario: Société Générale Tells Clients how to Prepare for Potential 'Global Collapse'

          Société Générale has advised clients to be ready for a possible global economic collapse over the next two years, mapping a strategy of defensive investments to avoid wealth destruction.

As yet, nobody can say with any certainty whether we have in fact escaped the prospect of a global economic collapse, said the 68-page report, headed by asset chief Daniel Fermon. It is an exploration of the dangers, not a forecast.

Under the French bank's Bear Case scenario (the gloomiest of three possible outcomes), the dollar would slide further and global equities would retest the March lows. Property prices would tumble again. Oil would fall back to $50 in 2010.

Inflating debt away might be seen by some governments as a lesser of evils. If so, gold would go up, and up, and up as the only safe haven from fiat paper money.

Anthony Samaha
Trading Engineer