Remember MacNeil Curry...
...aka the second coming of Tom Stolper [7](even if he has a way to go to catch up to Dennis Gartman [8]), aka the FX gift that keeps on giving? Well, he just gave another FX gift.
Stopped out of €/$ short as $/CAD probes pivotal support
We have been stopped out of our €/$ short on the overnight push above 1.1392. This break points to a larger upward correction than anticipated and further gains for a test of 1.1534/1.1538 resistance (Feb-03 high and 10m trendline). While this may be a near-term sticking point, absent a break below 1.1156 (old channel resistance, now support), stay bullish for a push towards 1.1675/1.1811, potentially the 200d at 1.1961 before renewed signs of stalling. Back below 1.1156 says the correction is over. Meanwhile, $/CAD is testing pivotal long-term support at the 1.1909/1.1915 area. While this is a very late stage decline, this support zone is unlikely to hold for long, given the weakened state of the US $. Indeed, a break below 1.1909 clears the way for a test of the 200d at 1.1764 before renewed basing.
This follows the following just as precious gift from the past two days:
- Stopped out of £/NZD long at 2.0830 (short at 2.11493 (avg) from May-12)
And now we look for the last current reco by Stolper, pardon Curry, to also go in our favor: the stopping out of BofA's long USDJPY reco from April 22 when the Dollar-Yen slides under 118.32.
What makes us nervous however is this:
Gold has resumed its 2m uptrend following the overnight break of 1208/1217 (1.5m range trade/bull flag formation & 200d MA). This 1208/1217 zone should now act as support on pullbacks. Stay bullish for a push towards 1250 and eventually 1307/1345.
Next up: another gold crash. In retrospect, being able to buy more physical at a lower price in a world in which central banks now own $22 trillion in debt is preferable.
