Financial Weekly Horoscope for Week 8th August 2011

Weekly Financial Forecast For Week Starting 8th August 2011

Monday 8th August: Moon will be in Libra
Tuesday 9th August: Moon will be in Libra
Wednesday 10th August: Moon will be in Scorpio
Thursday 11th August: Moon will be in Scorpio
Friday 12th August: Moon will be in Sagittarius

Hope readers managed to make some profit out of the retrograde Mercury and subsequent fall on the bourses. Mercury will be retrograde until 27th August and keep the markets extremely volatile.

The Dollar is falling while Euro stabled with a solution for Greek crisis announcement. All major equities will continue to be rangebound.

Forecast for Dow: The Dow had a long pending retest of 11600 and this week it moved lower than that as well thanks to a retrograde Mercury (which of course in business language will be termed as margin calls!) The range for Dow now stands at 11300 to 12000 and one should take appropriate hedges for trading positions on either side [If you are long, make sure you take a Put as well and if you are short, make sure you take a call option as well and keep appropriate trailing stop losses on both ends] Both Sell on Rise and Buy on Dips recommended

Forecast for FTSE: Range will be 5200-5600 (All clauses mentioned for Dow applies to other indices as well)

Forecast for Nifty: For Nifty, the range will be 5092 to 5408 [it has 3 consecutive closes below 5408 now and will take some time to tide over it]

Forecast for Euro-USD: Expect range bound movements between 1.38 and 1.44 during the week; Sell on Rise recommended

Forecast for GBP-USD: Expect range bound movements between 1.58 and 1.64 during the week; Sell on Rise recommended

Forecast for USD-JPY: JPY may depreciate further vis a vis USD; Long positions closer to 77-78 can be profitable; Buy on Dips recommended

Forecast for USD-CHF: USD is expected to pull back slightly against the CHF and buy on dips is a good strategy; Buy on Dips recommended

Forecast for Gold: Gold is expected to remain range bound between 1600 and 1660; Both 'Buy on Dips' and 'Sell on Rise' strategy is recommended [Now one may question the forecasts of the last couple of weeks but please remember to check the gold price against the dollar index. In reality, gold prices have hardly moved more than 2% on either side in the last 1 month if one takes the perspective with dollar index]

Forecast for Silver: Silver is expected to fall back against a rising dollar and 'Sell on Rise' is the recommended strategy