Currency pair EURO/USD at important make or break point
Whole the world respects the UD dollar as valuable as gold as or even better than glittering yellow commodity. This time Fed pumped in more than 3 trillion dollars into US economy in last few months caused depreciation of US dollar compare to other currencies specially EURO. That’s the biggest reason of current rally in Gold, although gold in uptrend since mid-2016. In last 4 years this commodity is moved from 1160 to 1900, but the jump from 1450 to $1900 in last 4 months proved to be the strongest rally. Gold is forming double top to the high of September 2011. At that time Gold formed high of 1920 dollars. Look at the chart what a clean formation of rounding bottom or the cup formation. This the monthly chart. Whereas another bullion commodity Silver moved up in a big way in last one week but is nowhere near to top of 2011. Silver has not even recovered by 38.2% of the drop from the top made 9 years back. That’s the reason W D Gann used to tell look at the long term chart for bigger picture.
Euro is depreciating against the USD in long term charts but in last 4 months recovered from the low of 1.06363 to 1.16581. Now EURO/USD is at its major resistance or the make or break point. It’s an alert to the policy makers.
In the month of July many commodities and stocks formed new high or even life time high. Markets of the world are not showing any sign of slowing down. Irrespective of the direction up or the down markets are bound to keep moving at a good pace. Most of the markets are in a big momentum and momentum is the life, sign of fighting back, loud slogan – We all are here in game. We all together will win the fight against the Covid19. History will remember spirit and the guts of this generation. Now onwards we all need to be little more careful, conservative and alert. Next few months may test the fundamentals on ground.
In stocks, Reliance Industry showed the strength to hold the Indian prime index Nifty 50 up only on Thursday and Friday. Stock of Reliance was in consolidation period for more than 7-8 years and as per the principles of Dow Theory longer the accumulation period, higher the stocks or commodities move up. Reliance proved the same. Look at the chart:-
At last weekly support and resistance levels of Indian stocks and commodities listed at MCX, NSE, and BSE.
