The Week Ahead for the Crosses..

Hi All,
Its still a good twelve hours before the markets begin and a lot of things might happen in between more so with USA still sleeping at the time of writing and Europe just waking up. But i am going to just stick my neck out and put down my thoughts on where i think the crosses might go on open for Sunday/Monday. Since it is the weekend, there is nothing happening technically on the charts and so i was looking out for some fundamental news. As many of you might have read, a attack has taken place on the Glasgow airport and UK is on high alert. This does not sound good for the GBP and so this might cause some retracement in the GBPJPY which will trigger the same on the other JPY crosses as well.

Also, the Japanese tenkan index is also getting release at 2350 hrs GMT on Sunday and that is something very important to watch out for. It determines the policy of the BOJ in the near future and so this will cause a lot of volatility in the market. The way the tenkan index shapes up will determine the course of the crosses over the next week. If it is bad, it will help the crosses touch 125, 250 and 168 but if it is good and strong for Japan, it will cause a good retracement/correction.

So what is my prediction for the crosses this week? Well predicting is a very dangerous business as everytime i predict,i put my reputation on the line. So far, things have gone great with my predictions but still it is a dangerous game. But trading in itself is quite dangerous and so here goes. I feel that the tenkan will come good and this coupled with the attack on the airport should cause some good retracement. But watch out. I might be totally wrong and it might so happen that the tenkan comes bad, and then the attack on the airport would be forgotten and the crosses might zoom ahead. My personal feel is that it will go down (sorry Mike) but we need to watch out what happens. So the best advice would be:- for those who have open trades already, wait and see till the Tenkan comes out. For those who do not have open trades (like me!!), wait till the Tenkan, see the direction and then jump in. No Hurry...Trade slowly, there are lots of pips to be made.

I hope the crosses dont make a fool of me. Lets see though..

Happy Trading!!