Money Weekly Horoscope for Week 21th May 2012

Weekly Financial Forecast For Week Starting 21st May 2012

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

Monday 21st May: Moon will be in Taurus
Tuesday 22nd May: Moon will be in Taurus
Wednesday 23rd May: Moon will be in Gemini
Thursday 24th May: Moon will be in Gemini
Friday 25th May: Moon will be in Cancer

Forecast for Dow: The range for Dow now stands at 10400 to 13250. Sell On Rise remains a preferred option with some Call options as hedges

Forecast for FTSE: Range will be 5250-5950. Sell on Rise recommended. Positions should be taken with proper hedges. A weekly close below 5550 will accelerate falls to 5250-5325

Forecast for Nifty: For Nifty, the range will be 4780 to 5655. Buy on Dips recommended.

Forecast for Euro-USD: Expect range bound movements between 1.24 and 1.28 during the week; Sell on Rise recommended [On a technical basis, some base effect can be observed in the 1.25 levels and eventual targets are 1.1825 which will not be attained in a hurry but this is significant information one should bear in mind.

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 is now over-bought and hence one may consider shorting as close to 82-83 for the next one week for higher risk-rewards

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 1525 and 1825; '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. Considering the amount of money printing that is on-going, silver may take a shot at 34-36 levels before turning down.