Update on majors

Welcome to the brainyforex newsletter special commentary.

Update on majors after one week

Continuing from the previous newsletter number 17, we were going to check the progress of the forecast after one week. We followed the trend of the US stock market. (DJIA). So, after a week, today 14 October we see the following results;

DJIA moved up as expected. + 140 points.
US Dollar move down as expected by 36 cents.

These movements affected our currencies as follows;

AUD/USD Profit + 158 pips.
EUR/USD Profit + 113 pips.
GBP/USD Loss – 15 pips.
USD/JPY Loss – 104 pips.
USD/CAD Profit + 231 pips.
USD/CHF Profit + 40 pips.

This same trend is expected to continue over the next week.

Note that fast moving markets that have had several trending days in the same direction, are prone to temporary price reversals. Hence, it is a good idea to put your stop loss above or below the prior days high or low. (Depending if your position is short or long). A classic example right now is USD/CAD. Notice from the chart below it has had a run of seven consecutive lower days - straight.

USD/CAD Daily Chart 14 October 2009.