Skip to main content

USD forecast for coming week.

I was expecting that USD will see more up moves in spite of being in over-sold zone. During past few weeks I was talking about covering short positions if USD breaks 81, looks like it was a good call.
Now if we consider its past trend then it can get a minor resistance at 84 and the major resistance is at 86 level. USD is now in more over-bought zone and if it reverses its position then it will get initial good support at 81.50 (31.8% Fibonacci retracement level is at 81.65) and then the stronger one is at 80.50 (61.80% Fibonacci retracement level from its 1st May low) level. here I must say that its Though I gave those support levels and looks like that USD is facing some kind of resistance below 83.50 level but still I think that USD may not see much corrections and it can test more up levels may be in later period of the coming week if not earlier.

The pattern which I mentioned in past can take it closer to 88–89 level but as I said that it may not go in a straight way. The way it moves this week it may change many calculations. Except the technical over-bought condition I don’t see much reason for USD to face corrections in spite of the fact that it faced up moves virtually throughout the last month. In technical word USD will not react with that pattern if it drops below 72.696 but that is beyond our imagination for now.


NOTEPlease see the disclaimer of this blog.

Comments

Popular posts from this blog

DAX forecast for coming week ended 15th March, 2013.

This week was very good for Dax, though it is getting resistance at 8100 range. Now it has a chance to test downside again. I think even if Dax tests lower levels, it has more chance to bounce back from around 7800 range and therefore it will again test upside.

On the other hand if it shows flat movements around 8000 range in initial days of the coming week then there is a chance that it may take a decisive call in later days. Considering the recent trends it has the chance to test higher levels may be around 8200 but that will be a very aggressive call after taking in to account the movement from last December. I will worry about the downside when Dax will be testing levels below 7600 ranges.
NOTE: Please see the disclaimer of this blog.

Fed’s rate hike Vs Sovereign rating up gradation

Financial market is very much worried about the rate hike in US, probably this is going to come in coming December. But I think that is not going to change much of the things. Even Fed hikes rate in December it will be not so much, because we are forgetting one thing that interest rate in US is around zero so even they hike rate by 0.25-50% basis points (at most) in this year that will not be enough cause for Dollars to change their locations around the world especially markets have already discounted this coming rate hike in US.

A new disaster is coming in EU banking sector, whom to blame, big Audit firms!

First I was thinking what should be the title of this posting? Will it be good if I write that big audit firms set the time for EU bank collapse! If someone is thinking that financial crisis is over then think twice because the coming EU banking crisis is no way less than 2008 financial crisis. The time bomb will explode at some point of time in future, the time has not yet set for it. In that tsunami, forget about the smaller if any major banks collapse then I will not be surprise.