Thursday, May 5, 2011

EUR/USD, Gold, Silver ~ Update ~ 5 May 2011

The EUR/USD declined almost three cents today and is now just above the support at 1.45:

If you have a look at the last four months you can see that we always got the same pattern over and over again: rally to a new high - retest of the old high - rally to a  new high - retest of the old high - ... -

And as long as this continues, i. e. the support at 1.45 holds, I expect the rally to continue. The next target should be around 1.51.

Gold (along with silver and oil) declined quite a lot this week. So far the uptrend is still intact though. The uptrendline is around 1400:

Silver declined 15$ or 30 % this week alone! So, I was right about a correction at the 50$ level but totally wrong last weekend when I thought we could see another rally to new all time highs before we'd get a real correction.

We may get a bounce around these levels (blue line). Most likely it'll be only short-lived and another sell-off may follow down to around 30ish by June/July (A-B-C correction).