We sent an alert to subscribers yesterday following the shock news out of Cyprus on Saturday that the Government would be confiscating up to 10% of all bank deposits as part of the agreed EU bailout, in an outrageous move that could cause serious damage to confidence in the European banking system.
The alert commented that we expected the Euro to sell off hard today and the Dollar and gold to benefit as "safe haven" assets.
This is precisely what has happened this morning, though gold's gains have been capped somewhat by the surging dollar. Equities are also selling off as the markets digest the unprecedented news and its wider impact on other EU countries and the Euro currency.
Gold hit a high of 1609 overnight, finding resistance at the top of an uptrend channel and is currently trading around 1600. The bulls will want to see a close above 1600, with resistance at 1620 in their sights.
A close above 1620 would be seen as confirmation that a major intermediate bottom was in and would likely see the shorts scrambling to exit their positions.
This could be the turning point we have been waiting for, with equities due a significant correction and gold forming a bottom.
Today's video for subscribers looks at the overnight trading action and our strategy for our current trade.
The alert commented that we expected the Euro to sell off hard today and the Dollar and gold to benefit as "safe haven" assets.
This is precisely what has happened this morning, though gold's gains have been capped somewhat by the surging dollar. Equities are also selling off as the markets digest the unprecedented news and its wider impact on other EU countries and the Euro currency.
Gold hit a high of 1609 overnight, finding resistance at the top of an uptrend channel and is currently trading around 1600. The bulls will want to see a close above 1600, with resistance at 1620 in their sights.
A close above 1620 would be seen as confirmation that a major intermediate bottom was in and would likely see the shorts scrambling to exit their positions.
This could be the turning point we have been waiting for, with equities due a significant correction and gold forming a bottom.
Today's video for subscribers looks at the overnight trading action and our strategy for our current trade.