Forex Forecast - 27 Sep 08

EUR/USD - This pair has moved up from the low of 1.3882 since 11 Sep. It reached a high of 1.4866 and has since retraced down to close the week at 1.4612. For the following week, I would expect the to continue to fall to 1.4469 to 1.4341 regions. Look for opportunity to long this pair in these regions with potential target exit near 1.5200 to 1.5250 regions.

Forex Forecast - 7 Sep 08

What a week !! Most of the pairs fell against the USD. EUR closed the week @ 1.4248, JPY closed @106.96, GBP closed @ 1.7626.

Outlook for the coming week ...

EUR - EUR formed a doji to close the week on the daily charts. If it can break the top @ 1.4347, we could see the EUR move back up to 1.4700 regions. Going below 1.4196, we could see the EUR fall to 1.3920 regions.

JPY - This pair is still in a bearish trend, technically. However, we could see the JPY retrace to about 108 first before moving down to about 105.

GBP - If GBP breaks above 1.7743, we could see the GBP retrace to 1.84 before moving down again. Going below 1.7535, we could see GBP testing 1.6870.

Disclaimer: These are purely my own views of the market. You are solely responsible for your own trade losses/profits if you decide to follow these forecasts.

FX Forecast - EUR/USD

Today the EURUSD dropped to new low of 1.4385, surpassing the previously projected low of 1.4660 region.

It is not wise to chase the market to try to enter short for the EUR now. Should wait for a reversal signal to try to catch a long entry for the EUR. Should the EUR start to retrace upwards, we are looking at the EUR to potentially rise up to 1.5150-1.5200 regions.