FOREX market review/prognosis from Forex Cloud – 09/24/12
At the end of last week, the main pairs (EUR/USD, GBP/USD, AUD/USD, and NZD/USD) started to form horizontal channels. EUR/USD started to build its channel between 1.2900-1.3100 levels. During the next few days, the pair will most likely stay in the channel and we can use the channel borders for scalping. But this type of trading will be highly risky, I prefer to wait when the channel will be broken and the pair defines a moving direction.
The GBP/USD pair keeps its strongest position at the top of the last wave in the current moment, but if the correction will continue, this pair can move down sharply. I think the GBP/USD pair is the best candidate to enter the market with a short position.
The pair USD/JPY has interrupted the down movement at the 78.00 level and it consolidates. I am still looking for a long trend to enter against the yen. But if the 78.00 level will be broken, the pair can move down to 77.70 and 77,20. The next week will bring few economic news from Japan that may define the movement direction of the pair.
Readers who wish to receive forecast charts from ForexCloud during the week, can subscribe to my profile on Twitter, Faceboook, Stockwits.com or TradingView.com, the name of the profile is ForexCloud.