FOREX ForecastNOTE: The material and the Forex forecast on these pages are presented solely for informational or educational purposes. No investment or trading advice or strategy or system of any kind is being offered, recommended or endorsed by the author, Forex-Trading-Insight.com or any of its affiliates, agents or employees. Analysis for week 18, 28th to 2nd of May 08Last week I said that we have two possible scenarios. Until now scenario two has been fulfilled, but we do not know where this is now going to end. As I mentioned, the wedge chart pattern is notorious and it must be traded with caution. We saw exactly this with a fake break up that I believe many amateur traders thought was a correct break up from a ascending triangle and went right into the trap. I believe the USD will strengthen (i.e the EURUSD will go down) somewhat the next couple of weeks, because it seems like the sentiment have change at least temporarily. Look at the stock market indices like SP500 and DJ30 and how they have handled the bad news (they actually went up). Together with a fabulous up trend of the EURUSD recently, a correction would be appropriate now. I still think that we should be careful though, since we have a wedge on our chart. I have seen it many times, a break down from a rising wedge and then a fast turnaround a another rally up to new highs. Be careful. Please also be aware of the Interest Rate Statement on Wednesday. A 0.25% change to 2.00% is expected.
For the Economic Releases, stay tuned at my Forex Calendar. Support and Resistance levels (EURUSD) according to the green Fibonacci Pivots are: Support
The previous Forex Forecast can be found at FOREX trading Blog.
|
