FOREX MARKET OUTLOOK.

FOREX MARKET RECAP for EURO, DOLLAR INDEX and GOLD.

EURO

The euro is testing short-term resistance at $1.48; breakout is likely and would signal an advance to $1.50. Reversal below $1.44 is unlikely, but would warn of trend weakness — as would penetration of the rising trendline. In the long term, breakout above $1.50 would signal an advance to the 2008 high of $1.60.

GOLD

Spot gold is consolidating between $1000 and $1020; a bullish sign. Continued respect of the new support level reinforces the signal. The weakening dollar also favors a primary up-trend. Breakout above $1000 would indicate a primary advance to $1100. Failure of support at $1000 is unlkely but would warn of a potential bull trap. The long-term target for the breakout is $1300.

THE US DOLLAR INDEX

The US Dollar Index is consolidating above short-term support at 76; a bullish continuation pattern. Breakout above the declining trendline is unlikely but would warn that the primary down-trend is weakening. The medium-term target for the current down-swing is 74.

4xGenie Support Team

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