Forex Market Direction.

Where Are The Major

Currencies Heading.

Knowing the overall forex market trend for the major currencies will prove beneficial for staying on the right side of the market. Forex Traders in general want to enter positions in line with the dominant market trend.

As the major currencies are paired with the US Dollar we can follow their dominant direction by analyzing the US Dollar.

Bullish = AUD/USD, EUR/USD and GBP/USD.

Bearish = USD/JPY, USD/CAD and USD/CHF.

Monthly commentary on the US Dollar is now only provided for newsletter subscribers.

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Direction of US Dollar for the next few years;

For the longer term direction of the US Dollar, Deutsche Bank believes that the dollar cycles have historically lasted around six to 10 years. As at 26 march 2013 Deutsche bank believes that the downtrend ended in 2011 and has now entered a sustained multi year uptrend. The article is located here www.businessinsider.com.au/chart-long-term-us-dollar-cycles-2013-3

Current Forex Market Forecast by brainyforex

Market Commentary

As at 22 October 2012

In our prior forecast of 11 September 2012 (see below) it was stated. Our next downside target is the natural square level of 79.00.

As seen from the above Weekly Chart we can see that price has been reacting on this 79.00 natural square level. So far failing to move under it.

The market has been moving sideways for the prior 5 weeks and continues to do so to the present day.

As is, can only expect more of the same sideways price action.

Market Commentary

As at 11 September 2012

In our prior forecast of 30 July 2012 (see below) it was said. Should price move under the prior week low of 82.59 this will signal that the current uptrend has halted and we should see the dollar moving down to test lower support levels, the first target being 81.00.

Price followed that path and now we have confirmed weakness in the US Dollar. As shown on the above weekly chart (11 September 2012) we see a break in the 81.00 support level and also a break in the weekly swing low, thereby signaling more weakness to follow.

Our next downside target is the natural square level of 79.00.

Just remember that price usually retraces backup towards an old broken support level to test it before making further lows. In this case there is a strong possibility that price will move backup towards the 81.00 (may not reach it though?) before falling towards the 79.00 target level.

Price pressure continues for the medium time frame as follows:

Bearish = USD/JPY, USD/CAD and USD/CHF.