-- Posted Friday, 26 March 2010 | Digg This Article
| | Source: GoldSeek.com
It’s all about the euro for the currency markets and the way the Greece issue has been more or less resolved. Technically oversold conditions exist for the euro as well as the cable against the US dollar which can result in short covering before the weekend. Federal Reserve Chairman Ben S. Bernanke told lawmakers today that the U.S. government’s budget outlook is “somewhat dark” and Congress needs to agree on a plan to reduce the deficit. The economy continues to require the support of accommodative monetary policies,” Bernanke said earlier in prepared testimony. He said the central bank will be ready to tighten credit “at the appropriate time.” This is a clear message that interest rates will not be changed at least in the next six months. As far as the need to reduce the deficit is concerned an export lead growth in the US economy could alter all that. As far as the US dollar is concerned its now up to the investor to choose between sovereign debt default in eurozone or a huge fiscal deficit in the US economy. In the short term I will prefer to remain invested in the US dollar but for the medium term to long term I am still a greenback bear.
COMEX SILVER MAY
Bearish below $1688 with $1663 and $1629 as price target.
Bullish over $1702 with $1712 and $1735 as price target.
Neutral Zone between $1688-$1702
Intra there will be sellers as long as silver does not break $1688-$1698 zone.
MCX COPPER APRIL SHORT TERM VIEW
Failure to break Rs.358 in the next two weeks will result in a fall to Rs.317 and Rs.297. Intra day as long as Rs.333 holds downside risk will be limited.
Disclaimer: Any opinions as to the commentary, market information, and future direction of prices of specific currencies, metals and commodities reflect the views of the individual analyst, In no event shall Insignia Consultants or its employees have any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this material; or in any delays, inaccuracies, errors in, or omissions of Information. Nothing in this article is, or should be construed as, investment advice. Prepared By Chintan Karnani. Website www.insigniaconsultants.in
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-- Posted Friday, 26 March 2010 | Digg This Article | Source: GoldSeek.com
