Apart from Sunday's announcement from leaders Merkel and Sarkozy that both agree that European banks must be recapitalized (the details of which will have to wait until Nov 2), let's notice that today's almost euphoric reaction has propelled the Euro/USD as well as gold and silver only towards a test of their prior recovery highs.
In other words, from a technical perspective, none of the enclosed markets has inflicted damage to their post April-May downtrends, which must emerge at 1.3700 (euro/$), $1.680 (gold) and $33.70 (silver) to get some sustained positive traction.
While such a move could be in progress -- subject to headline risk (positive and negative) -- for the time being the technical set-up remains in the grasp of corrective bearish forces that project new lows in the days/weeks ahead.
ETFs to watch are PowerShares DB US Dollar Index (UUP), SPDR Gold Shares (GLD), and iShares Silver Trust (SLV).
In other words, from a technical perspective, none of the enclosed markets has inflicted damage to their post April-May downtrends, which must emerge at 1.3700 (euro/$), $1.680 (gold) and $33.70 (silver) to get some sustained positive traction.
While such a move could be in progress -- subject to headline risk (positive and negative) -- for the time being the technical set-up remains in the grasp of corrective bearish forces that project new lows in the days/weeks ahead.
ETFs to watch are PowerShares DB US Dollar Index (UUP), SPDR Gold Shares (GLD), and iShares Silver Trust (SLV).
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