Forex predictions

Here we go again with new Forex predictions for August 5/ 2010.This currency pair is an exotic, the EUR/CZK. This currency madea high in early 2009 of 29.65, it's now trading at 24.71 Iam putting a long forecast on this Forex pair. This is just for a bounce off this level, this pair is likely to bouncethen make lower lows, don't be greedy on this trade.

We have another currency pair for a long position, the EUR/CHF is trading at 1.3345 as I write this on Monday July 12/2010. This Forex pair has had a huge drop last month, so the trend is still down. You could still get some lower prices from this level, but l believe there is some good value in buying at these levels. This currency pair has dropped a 1000 pips last month, so l would start looking for higher prices. Long forecast for EUR/CHF is in the cards.

Here are some new Forex predictions for the EUR/USD, it has been rising in price for a few weeks now. It made a low of 1.1876 on June 6, 2010 and closed Friday June 18, 2010 at 1.2388. This currency pair is very mixed in my opinion, it looks bullish and bearish at the same time. I am going to take the bearish side, l am expecting the EUR/USD to fall in prices from around the level 1.2388 to 1.2435 area. This could just be a 100 pip drop, or more it's too early to tell. Short-term weakness in this pair is expected.

Possible long for the EUR/CHF, it's May 17/ 2010 this currency pair has been in a long down trend for over two years there is a definite commitment by the sellers. This pair topped out around 1.6822 many months ago. l think it's ready for some higher prices in the short-term future. The main trend is still down, but I'm expecting some buying to step in the market. It's trading around 1.4022 as a write this forecast. l think it could go up 200 to 500 pips or more it's anybody's guess. Long trades only on the radar.

March 7 / 2010 The NZD/JPY has made a low of 60.61 a few days before these Forex predictions,it has some additional gains from the non farm payrolls on Friday March 5 / 2010.This pair has some good energy behind this upward climb,I would recommend long trades only for the short term.It has closed at 62.90 on Friday this week,if it does pull back from the high it made on Friday to 62.17 I would expect this to be an area of strong support .The NZD/JPY should easily make it's way up to 63.76.The charts are saying go long,but itwould be wise to buy on weakness to get a better entry point.Remember sometimes non farm payrolls create fake moves from the market.

February 12, 2010 Forex predictions, nzd/jpy made a low of 60.48 and climbed higher all week and made a high of 63.05, it has sold off,but my thoughts are that it will run back up and if it does I have major resistance at 63.21 , I expect the sell off to kick in around that number. This pair is very bearish overall and taking shorts around 63.21 is a high probability trade.

February 4, 2010 here are some Forex predictions for nzd/jpy currency pair, this is considered an exotic pair.I am looking at this chart as I write this, and this is what I see, a very bearish currency.This currency made a low of 60.62 today and is trading at 61.30 as I write this and it's 2:15pm est. I am going to say this pair will push higher at this time,there is a scalp but you would want to be fast,maybe 5 or 10 pips ifthis is your style,very risky . I expect lower prices on this pair . It has taken a big drop today and they should support it short term ,so at this time 2:25pm it will likely push higher, main trend is down.

How Forex predictions are made.The foreign exchange market (forex) is the largest financial market worldwide with more than $3.2 trillion in activity daily. Savvy forex investors speculate on the value of various currencies for profit. The foreign exchange market is easily accessible; but before you get too heavily involved in trading, it is wise to learn as much as possible about forecasting.

There are a couple methods used to foretell what currency will be valued at in the future. The fundamental approach attempts to forecast trends and future rates using fundamental economic variables. The technical approach, on the other hand, uses past performance information, and analyzes it using charts or statistics to predict the future.

Fundamental approach to successful forex trading

The fundamental approach uses a number of economic variables, including political situations, trade balance, savings rate, consumption, currency prices, expert opinion surveys, etc. Once these variables are gathered they may be analyzed using a mathematical approach; or they may be evaluated using a judgmental approach which relies on personal opinion about what the latest data means in terms of forex predictions.Using the fundamental approach provides relevant data points about how a currency market is impacted. In addition to numbers, it’s also important to take into account what the key financial spokespeople of the nations being evaluated have to say.

Once all of these data points are gathered, you can identify trends in supply and demand and how they match up with the expert’s forecasts. This information can then be used to determine both the current as well as the forecasted value of one country’s currency against the value of another country’s currency. Fundamental analysis is essential in predicting future forex trends, especially when making mid- to long-term decisions.

Technical approach to successful forex trading

With the technical method, investors study historical market activity to predict what will happen in the future. This method of predicting the future is successfully used in a number of applications, both financial and non-financial. This is because people’s basic instincts change very little over time. If investors reacted in one way 25 years ago, when the same conditions as those that exist today were present, it is highly likely that they will react the same way today.

The main data points considered with the technical method are trading volume and price. Daily, weekly and monthly fluctuations in currency prices are charted out; and the analyst uses a variety of mathematical calculations that were developed specifically to monitor activity in any financial market. Trend charts are then developed to predict future action in the foreign exchange market.

Forex predictions are made based upon the conclusions drawn by the charts, graphs, mathematical calculations or any combination of these factors. A major advantage of using the technical analysis method is that experienced analysts are able to follow a number of markets at the same time.

The two prediction methods use important data points to make forex predictions. However, while the fundamental method focuses on the big picture of what’s happening in the world and markets today, the technical method zeroes in on trends. While both methods have strengths and weaknesses, combining the two creates a formidable tool for success in the foreign exchange markets.