Money Weekly Horoscope for Week 23th January 2012

Weekly Financial Forecast For Week Starting 23rd January 2012

In terms of astrological placement, following major positions are expected to play out this week:

Monday 23rd January: Moon will be in Cancer
Tuesday 24th December: Moon will be in Leo
Wednesday 25th December: Moon will be in Leo
Thursday 26th December: Moon will be in Virgo
Friday 27th December: Moon will be in Virgo

Forecast for Dow: The range for Dow now stands at 10400 to 12750. Sell On Rise remains a preferred option with some Call options as hedges

Forecast for FTSE: Range will be 5250-5750. Sell on Rise recommended. Positions should be taken with proper hedges [Please note that astrological indicators are not in favor of FTSE and during the time fiery Mars is in Leo, the planets are hinting at a target of sub-4000 within next 4 months on FTSE and the falls will actually accelerate after 4900 is breached on FTSE]

Forecast for Nifty: For Nifty, the range will be 4800 to 5177

Forecast for Euro-USD: Expect range bound movements between 1.26 and 1.32 during the week; Sell on Rise recommended [On a technical basis, now if the Euro-Dollar posts 2 consecutive closes below 1.3225, the next logical target will be 1.1825 which will not be attained in a hurry but this is significant information one should bear in mind. Some calm may come into this pair at 1.25 odd levels]

Forecast for GBP-USD: Expect range bound movements between 1.51 and 1.58 during the week; Sell on Rise recommended

Forecast for USD-JPY: JPY may depreciate further vis a vis USD; Long positions closer to 75-76 can be profitable; Buy on Dips recommended

Forecast for USD-CHF: Same like USD-JPY, Buy on Dips recommended till Dollar index hits 81.5-82 levels

Forecast for Gold: Gold is expected to remain range bound between 1575 and 1750; 'Sell on Rise' strategy is recommended. If the equities and other commodities witness a sell-off as expected, there may be a sudden mania for gold and it may try to go towards USD 2000. Since margin requirements have also increased, an appropriate strategy should be to build a long-short position pair via futures and then trail the position that is gaining. We would like to remind readers that current volatility is not healthy for traders and one should avoid playing with gold on the forex sites. Take positions with futures with your broker and ideally take a 3 months forward contract with some margin money to spare - eventual target for gold is 1450-1500 in the next 2 months.

Forecast for Silver: Silver is expected to fall back against a rising dollar and 'Sell on Rise' is the recommended strategy. Looking for silver to find a bottom around USD 22/25 levels within the next 5 to 8 weeks - no fresh buying should be initiated before that. For trading, as mentioned already, Sell on Rise is the preferred strategy for Silver.