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USD forecast for coming week ended 3rd August, 2012.

Last week I was expecting that if USD does not go up in earlier days then there is more chance of drops in later days. Now I do not want to go whether it has reacted on short-term bearish pattern this week but unless it goes above 84, I am not too much confident about the upward move of USD. In fact if it does not break 83.5 in earlier days then there is risk that it may test lower levels. If it breaks 82.5 level then there is a chance that it may test 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.

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. I have a feeling that if USD may face strong resistance at 82.5 level and it may bounce again from this level.

NOTEPlease see the disclaimer of this blog.


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