Last week began with Euro decline and an established breakdown of EURSUD pair by 1.2320. However, in order to trade it is essential to wait for active auctions on Monday (that is at least the opening of European area) and to ensure that the breakdown that took place on Friday was not false, which is possible at such level. Unfortunately, there are no real confirmed data of positions in Forex, and that does not let perform the analysis of the balance of the power of customers and sellers at such level.  That is why the confirmation of the breakdown is so important.

The decrease in petroleum price led to decline in value of Australian dollar compared with USD. Under speculator’s pressure the rates of AUDUSD pair broke down the support level of 1.0225. Perhaps on Monday Australian dollar will decrease significantly, and it will become possible to enter trading on market openings with short stops for support level of 1.0225. The deal seems to be pretty good, since the mark of reduction is at 1.0000, which makes up more than 200 points at current price.

There are no other interesting forex instruments. Gold is fluctuating within 1545-1636 range and the prices are dropping. Who was able to enter the decrease may draw in the profits, but it is pointless to enter the trade now because of the low proportion of profits/potential risk. It is better to wait the gold to reach lower limit of 1545 and to watch how the rates behave at this level. Will there be a rebound or the breakdown? Moreover the breakdown might be false again, the way it happened two weeks ago, that is why one should be very careful with breakdown sales.

The general market sentiment is negative for two reasons: the situation in Europe does not seem to be improving, that of the USA is not getting any better as well. The latest data concerning the job market of the leading world economy disappointed the investors, since the indicator of the overall unemployment rate stayed the same 8,2%, but the job increase was lower than the estimated 90 000 and turned out to be 80 000. The difference is not big, but the lack of dynamics means difficulties on market, and that is happening amid seasonal increase in jobs.

Thus next week it is preferable to be a moderate bear, than ardent bull.

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