Due to the moves seen yesterday and today in currencies and Gold plus other futures i have inserted this post before the end of what should have been a quiet period before the new year and before my hot ideas about 2012.
Gold has reached what i believe is critical support and its current centre line objective ( the pink Schiff fork below). I am looking for a short term bounce to $1550-60... then depending on the signals/fork behaviour i will look to sell into the top of the rally if it fails. There is a potential bullish signal that appeared today which is that price should touch the CL of both Schiff forks
( drawn form the top left high (2) and top right higher high ( not numbered). See small charts.
Price is still short of the lower of these two centre lines and must return to 1520 to puncture it or reverse. We will in my opinion have still to test 1500$ and major support lies at 1475 ( see Esignal chart) where we will find out if gold will hold or will go lower but it maybe we are in a bearish phase that may last many months possiibly longer. EurUsd review to come
PS:My feeling is that Sterling and GBPUSD is the most potentially fragile currency (pair) for 2012 and we could see GBP hit against the majors. I have a long term short position ( taken early this week) which i will hold for the coming months ahead ( see lower chart below). But the 5 min charts shows an extremely high probability setup using the Schiff fork( blue) CL failure. If you do not understand my choice of pivots/forks please read this LINK
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