FOREX market review/prognosis from Forex Cloud – 10/28/12
The last week was not completely successful. My order in the GBP/USD pair (https://www.tradingview.com/v/IY0oLGGU/) broke through the stop loss and the pair continued on the prospective scenario, leaving me with a loss of 20 pips. Happens… the SELL order in the same pair came out to the mode “non loss” (the stop loss is moved below the initial point), but I don’t like the development of the situation. I will most likely have to close the order on Monday, not reaching the planned profit level as I have the impression the pair will go upwards and breakthrough the level of resistance and will test the level of 1.6200.
Even though the EUR/USD pair is in the middle of a descending trend, it drew a line of a bullish turn and most likely on Monday will test the top border of the channel (1.2980). Unfortunately, the link between the risk and profit in the current situation doesn’t correspond to our requirement (1:1 and above) so we will refrain from entering the market and we will watch the situation develop from a side.
The Australian dollar is at the top border of a poorly generated horizontal channel. Whether it will jump downwards or breakthrough the border and fix itself above the 1.0400 level will know next week. Going into the market with this pair is difficult.
The pair USD/JPY tested the level of 80.50 and rolled back to 70.50. Next week on the night between Monday and Tuesday the Bank of Japan will make it’s decision for the interest rate, it is expected that it will stay the same, on the level of 1.0% (Surprise!!!), but there might be other steps to softening the economic policy, meaning further weakening of the yen. It is possible to enter in the market with a LONG position, if the opening of the market on Monday doesn’t bring any surprises.
The AUD/NZD pair continues to bargain in a narrow price range. The possibilities to enter the market with this pair are not visible.
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