Gold & Euro Futures Technical Analysis Prep

845am EST

Gold futures trading at
the lows of the short term price wedge and its trading in the middle of the
longer term price wedge.  The middle of ANY trading range
is always expected to be a little sloppy, so today on gold futures we can only
assume this price action is going to be sloppy and challenging.  At the lows of this price wedge we want to
buy, however, we need to be patient and make sure the market personality is
giving us the high-percentage trades today on a summertime OPEX Friday.  As price falls lower we want to buy to fade-the-breakouts
and the same is true for the opposite if price rises.

The euro currency
futures are trading in a very narrow short-term trading range this week.  We have seen the Euro hanging out at the lows
of the long term bear price channel for over a week and we know that the lack
of direction is coming from the lack of direction from Europe.  Without a solid plan in place from the ECB we
know this is causing traders to trade very carefully, and without much market
personality this week we never really know today when the high-percentage
trades will occur.  We almost need to
wait for the euro to have a few days in a row of high-percentage trades before
we can really get our confidence back.  If
I do wish to trade euro buying the lows of the range is the high-percentage
trades and if the sellers push new lower-lows we need to beware the fake-out
breakout before we start selling it short with wave patterns.