The Advisor Weblog

Posted: 07 Nov 2011 06:35 AM PST

Hi everyone! Week opened with a touch of optimism, as if the failure of Papandreou was something to cheer about. In the meantime, data of the euro zone come out worse than expected, with confidence down, as well as retail sales and industrial production. Not a minor data that shows a slowdown in consumption and so, in economic recovery.

And while Greece woes seems endless, Italy is now adding to the euro bearish case, as rumors of a Berlusconi resignation (lately denied) hit the wires earlier today. Italy's huge publish debt is next hurdle in the euro zone area as today, the benchmark government bond yields rose to their highest since 1997 at 6.67%. The Italian debt is one of the highest in the world.

And the market barometer continues pointing for more risk aversion check the daily gold chart: the metal is testing the 61.8% retracement of the September slide from $1920 to $ 1532, around $ 1772: in fact gold is barely above it, with a clear bullish tone as per higher highs and higher lows daily basis.

I don't believe the dollar has the strength to resume a bullish trend; but if there is a currency that we could consider even weaker, that's the Euro.

Here is the hourly perspective for the US session on major crosses:

http://www.fxstreet.com/technical/analysis-reports/currency-majors-technical-perspective/2011/11/07/02/

Have a great trading day!