FOREX market review/prognosis from Forex Cloud – 11/05/12
Despite my fears, the SHORT in the GBP/USD pair (https://www.tradingview.com/v/Wh9WZXBK/) has slowly gone down to the planned level and brought me and my clients 90 pips. A LONG position in the USD/JPY pair was opened on Monday as planned (https://www.tradingview.com/v/avk634kf/ ), in a few hours it came out to a no-loss level and I moved my stop, but the session of the Bank of Japan did not justify the hopes of investors for further softening the economic policy and the pair went down, leaving me without profit. Unfortunately I didn't retry going back in when the pair reached the level of 79.50, it’s a pity. On Wednesday the growth restarted and by Friday the pair has risen to 80.50 (at the 80.35 level I planned on closing the initial LONG positions). Now the growth of the pair is equally probable to grow to the level of 81.00 or do a correction to the level of 79.50. We wait…
On Friday, despite the successful data on the work market in the USA, there was an active sale of risks. Investors leave the market on the threshold of the presidential elections, which will take place on Tuesday on the 6th of November. In my opinion, there is a good possibility to enter into the market against the US dollar. I have opened a LONG position in the EUR/USD pair and next week I plan to open another position in the AUD/USD and/or GBP/USD pairs.
The AUD/NZD pair has reached its support level, investors are selling the Australian dollar, expecting further softening of the economic policy by the Bank of Australia which will declare the decision for the interest rate on the night between Monday and Tuesday. The market expects a further decrease by 0.25% (to 3.00%). If it doesn’t happen, the Australian can strongly strengthen its position. On Tuesday it will be possible to consider the possibility of a LONG in this 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.