Wednesday, June 6, 2012

Forex outlook for June 2012

http://forexnewsnow.com/wp-content/uploads/2010/10/EUR-USD-analysis-a-pile-of-euros2.jpgThe US employment report will be released in the beginning of June and is likely to set the tone for the month, recent economic news have been bad for the Eurozone and Asia, with the political turmoil in Greece and the stand-bye situation til the new elections expected on June 17.



In Asia, despite being in constant growth, China recent slowdown could be a problem for the region, indeed in april the industrial production grew by 9.3% which is the slowest growth since years.
In Japan the private consumption and exports have brighten the country's economic outlook  due to rebuilding the country after the earthquake and rising  automotive industry despite the strong yen.

Concerning the EUR, what will happen to greece this month will determine the signal, if greece leaves the euro zone the following 2 weeks will push the Euro down, therefore a Sell signal can be a good choice for the 2 weeks period after it, and on the long term this could be the beginning of the restructuration of the economic health of europe.

My recommendations:
after the 17th June
 -Long Term if EUR/USD drops to 1.23 --> Buy Signal with Stop loss at 1.15, and Take profit at 1.30
 -Short term for the next 2 weeks: -->Sell signal at market price (today 1.2469 with a take profit at 1.2350)
and a stop loss at 1.260 )

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