DJIA affects currencies

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DJIA affects currencies

DJIA Daily Chart 6 October 2009.

As seen from the above chart we notice;

The US stock market is in a bullish move as it has exceeded its daily vibration to the upside as well as moved above the 9600 natural square level. (Also refer brainyforex back issue newsletters number 13 & 14).

Over the next two weeks we should see the US stock market move further upwards. If a minor retracement is made it should stop above the 9600 natural square level before climbing higher again.

What does this mean for the forex market?

We should see the US Dollar move in the opposite direction to the US stock market. This will mean that from today the 6th October, we will see the US Dollar fall straight down further from here or retrace back up to the natural square level of 77.00 for a short time before continuing its downward fall again.

This will have the effect on the currencies paired to the US Dollar as follows;

AUD/USD – Bullish with the possibility of a minor retracement first.
EUR/USD – Bullish with the possibility of a minor retracement first.
GBP/USD – Bullish with the possibility of a minor retracement first.
USD/JPY – Bearish with the possibility of a minor retracement first.
USD/CAD – Bearish with the possibility of a minor retracement first.
USD/CHF – Bearish with the possibility of a minor retracement first.

This forecast was done by calculating the “time cycles” and “natural square levels” for the DJIA, US Dollar Index primarily as well as the above individual paired currencies mentioned above.

We will review this forecast again in one week and see its progress.

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