Results after two weeks tracking DJIA

Welcome to the brainyforex newsletter special commentary.

Update on majors after our two week forecast

As noted on the previous newsletter number 17, we followed the trend of the DJIA to forecast the major currency pairs. The final results after two weeks has been as follows;

DJIA moved up as expected. + 218 points.
US Dollar move down as expected by $1.36.

These movements affected our currencies over the past two weeks as follows;

AUD/USD Profit + 374 pips.
EUR/USD Profit + 298 pips.
GBP/USD Loss + 688 pips.
USD/JPY Loss – 216 pips.
USD/CAD Profit + 166 pips.
USD/CHF Profit + 211 pips.

The trend is now expected to reverse from tomorrow as the DJIA is showing signs of temporary weakness. Refer below;

DJIA 21 October 2009

As noted on the chart we see price halted on the natural square level of 10,100 points as predicted last week.

We also see a double top on the one day swing chart (see red circles) as well as a break to the downside of the one day swing chart. (refer lower red circle).

We see the time vibration about to be broken to the downside which will signal a high probability move to the downside.

Turning our attention to the US Dollar we notice that it is right on the natural square level of 75c. As the DJIA moves inversely to the US Dollar, we can expect an immediate turnaround in the direction of the US Dollar. There is a very high probability that the US Dollar will now start moving upwards for a time period.

What this will mean for the major currencies in the short term is;

AUD/USD, EUR/USD and GBP/USD have reached temporary tops, and should start moving down temporarily.
USD/CAD, USD/CHF and USD/JPY should move higher.

DJIA Daily Chart 21 October 2009.