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USD forecast for coming week ended 27th July, 2012.

Last week I was expecting that USD may correct for few days and it got the initial support levels. Its move in the last day was quite encouraging but unless it goes above 84, I am not too much confident about the new up moves. In fact if it does not go up in early to middle days of the coming week then things may become different for USD.

There is not much change from last week so I am still holding most of those views. Long-term pattern demands USD to go around 89–90 level but since it is not a straight up move so a short-term reversal was due. But if it again got resistance around 83.5 then I am not too much confident about the support level which USD was getting this week so if it drops more from here then in the downside the older levels of 81.50 and then 80.50 (which is its 61.80 retracement level considering 1st May low) are still intact.

Here I must say that if USD touches 81.50 then it may be making a bearish pattern, though this is a very early call. But somehow if that occurs then that future pattern can take USD to around below 80 level. I will later focus on this matter.


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