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Currency market review (weekly) after 20th January, 2012.


EURO’s move was better against US dollar, as it gave positive closing after 5 weeks. I think now many things depend upon Greek debt talk. I was looking a report which said that cost of accessing dollar fell to its lowest level, now that means that market is expecting some good things in coming days.

Currencies
20th Jan, 2012
1/13/2011-1/20/2012 (%)
1/6/2011-1/13/2012 (%)




USD
80.22
-1.52
0.25
EURO/USD
1.293
1.97
-0.16
AUD/USD
1.048
1.55
0.98
USD/JPY
77.12
0.18
-0.17
USD/RUPEE
50.33
-2.14
-2.56
Swiss FRANC
0.934
-2.19
-0.1
S.African RAND
7.949
-2.18
-0.45
Brazilian REAL
1.763
-1.73
-2.97
Mexican PESO
13.177
-3.05
-0.98

USD gave negative closing after 3 weeks; on the other hand Brazilian REAL and Mexican PESO, all of these types of currencies saw strength this week as EURO fears ease a bit. PESO and Indian RUPPEE appreciate for 3 consecutive weeks, looks like they are making their move after considering USD.



Currency market forecast for coming week.

As I said in last day EURO is trying to get support in that 1.26 range, I was expecting that it may test 1.32 levels.  I think it will be in the range of 1.16 to 1.32 in coming days.
As I said in last week AUD is trying hard to break 1.04 and looks like it may test 1.07-1.08 levels in coming days. But as AUD is gaining for 5 consecutive weeks so we may see some profit bookings in it. In the downside it may get resistance at 1.02 levels. But as I said in past that unless it goes below 96, I will be looking for 1.07.
USD’s move was very disappointing this week. Last week’s close was encouraging but it did less this week. Now 79.5 is good support for it, if it breaks that then it can test 78.5. In this moment the lowest figure can be 76.5. Now I am telling this because it looks to me that USD is trying to make a short-term pattern which says that in coming future it can drop, though it may not be in coming days. What I am expecting that in coming days it may test 79.5 levels and then again try to re-test 81.5 levels.
I am still holding my past views for Japanese YEN and Swiss FRANC. Brazilian REAL is testing lower levels but unless it breaks 1.673, I am confident about that 1.90 level. So as I said in last day, that 1.74 support level is still important for now and it has more chance to go up from this level. 7.7 is a good support for South African RAND, and in the upside it has strong resistance at 8.2.



[Rise and drop in currency (under heading currency forecast for coming week)  means rise & drop in chart figure, not currency’s rise & drop though sometimes it is same in meaning.]

NOTE :  Please see the disclaimer of this blog.

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