Reinforced TREND

With the negative report on the UK Manufacturing figures the GBP/USD has made it's sell-off to the levels of 1.5874 low for the trading session and is currently working back for a correction at the price of 1.5906 as of this writing. However, the USDX is continuing its lows and may probably see some new lows as it attempts to reach its support price of 75.90 at the rate the momentum for the EUR/USD establishes some news highs for the last quarter of the year.

The weakness of the US Dollar gave rise to the Gold prices as it also made some newer high price at the levels of USD 1,043.33 and barely a low on the support price of 1,002.60. This indication above the 1,000 USD mark signifies that the prices may eventually maintain at this levels as there are really no signs of a US Dollar recovery.

We shall maintain our position since the persistent bias in the market still prevails as we have previously mentioned from our previous blogs since August 2009 when the Gold prices were still at the breaking point of 942.50 dated the August 18. The steady deterioration of the US dollar has been maintained in spite of the meeting with the G-20 and the uneventful reports favoring the economic recovery which until now only shows on the stock markets performance but not in the real figures of the US dollar. That is why until today the consumers has not build any such confidence in the value of the US Dollar. Specially against the NZD/USD ( New Zealand Dollar which has also been registering some significant new highs at the price levels of 0.7376.

Good Luck and Happy Trading !