Monday, October 3, 2011

Weekly trades

This is a week packed with a lot of fundamental news releases from the RBA,MPC,NFP,ECB and many more so you must really watch the markets for a game changer this week. Rhetoric from any of the officials of these countries may cause a lot of volatility especially if they come in against market expectation.However,in most cases technical analysis has already factored in what is expected and its usually a case of sell the rumor and buy the fact.I will be watching the Eur/Usd pair especially with the weekly signaling a bearish momentum considering the many unending problems with temporary fixes. A break of the major trend line and the 50% fib indicates some more downward momentum towards the 61.8% fib.


The Aud/Nzd seems to be forming a head and shoulder pattern on the daily chart that I believe may totally play out depending on the outcome of the RBA decision meeting this week. Fundamentally,the two currencies have been bearish against the US dollar with Newzealand being down rated by S&P to a lower status while the Australian dollar interest rates expectations being dovish for the considerable future.However,we will watch the pair closely and see if we can make the pips should the pattern play out as expected.

Good luck trading and make sure you do a thorough analysis considering the fundamental news releases this whole week.

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