Now we have come to the last trading day of the week and the month of July.

After 2 days of gain and holding high ,and quick upward move of wednesday,the market started the slide in EURO and GBP rest of wedneday and Thursday.Now the last day of the week,we find the higher level long holders are not yet given a chance to close the positions with profit.The lower level sell position holders were able to close some of their sell positions if they have not done the short covering during the earlier rise.But every day some technical traders are taking breakout sell trades after quick drop it appears - the pull backs after quick drops indicate such conditions.What could happen next.?Players are known to make their money by making eitherway trapping of traders.Mostly they target the lower level short sellers who sell after the quick drop and higher level long holders who buy after the quick rise.

Now EURO and GBP are in the middle level for the week.How ever AUD has made only a nominal drop after the quick gains and USD/CAD gained 100 pips and holding around 0.95 area.But USD/YEN and USD/CHF are holding near the season low .there may be a  nominal drop and gain moves in them.

AUD may slide some more and drag EURO and GBP on the downside.

The expected market moves says

Swing and slide during japanese session, Quick drop during early European session with nominal pull back towards close of European session.More drop may happen during early US session.then a rise to trap the last minute short sellers for the week end.

As of now the momentum appears low.if more traders participation comes,we may see the expected market moves happening.

For US GDP data release (12:30 GMT) there may be some quick either way  volatile moves.



Views: 340

Comment by Richard on July 29, 2011 at 6:06am
hi Doc will the euro drop nextweek
Comment by Rajanna Raji on July 29, 2011 at 7:51am


What is the forecast for gold???

Comment by fammira on July 29, 2011 at 7:55am
Dear Dr. Sivaraman,

can you share with us some levels for AUD?
1.0930 - 20 seems quite important as is where the last rise started.
and 1.1080 is where the upmove has ended so far.
Do you see potency for one of these two zones to be breached?
Comment by Dr. Sivaraman on July 29, 2011 at 8:11am

Dear Richard

There is a potency for EURO to drop further during early next week.



Comment by Dr. Sivaraman on July 29, 2011 at 8:12am

Dear Rajanna

Gold may slide more during later part of this session and US session.We may see some good drops during early next week.Still please  use other parameters to assess such moves.



Comment by Dr. Sivaraman on July 29, 2011 at 8:15am

Dear fammira

AUD has all the recent gains in 2 days.We may see AUD leading the slide today and early next week.There is also a potency for EURO and GBP to gain during next week data  release time and AUD may not participate  and slide futher.A strategy used  to handle AUD crosses.




Comment by Vinesh Jagmohan on July 29, 2011 at 12:46pm
Doc do you expect UERO/CHF and USD/CHF to rise next month?
Comment by dev on July 29, 2011 at 3:29pm
Dear doctor...with the uncertinity in the international market don't you see that forex trading now a days has become gambling.....Not a single pair follow any prediction, charts, support or resistence etc etc....all currencies either in their record high or record low and making everyday a new record...please share ur experience if you had such situation in the past....
Comment by ATF on July 29, 2011 at 4:03pm



very thought provoking .........




kindly share ur views sir......

Comment by Bassam A. Muhammad on July 29, 2011 at 5:03pm

Hello Dr, Any comment to what happened today? now i fully beleive in your theory of players traping traders :) , using a news trigger they raised the market to trap everybody 180 pips up , super trap ! , just when everybody was counting on  a slide.




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