Commonwealth Bank of Australia (CBA) has recently downgraded its forecast for the Australian dollar exchange rate. The analysts of Australia’s biggest commercial bank expect the public spending to be cut down to 364.2 million dollars. This will be the first spending cut in more than 40 years.
The implementation of the new program aimed at reaching a 1.54b surplus will affect Australia’s economic growth. Consequently, the RBA will have to cut interest rates in order to stimulate the economy. This will weaken the Australian currency.
The CBA analysts expect AUDUSD to decline down to 0.9800 by mid 2012 and to recover up to 1.0500 by late 2012.
According to Masterforex-V Academy, the Australian Dollar keeps losing value against its US counterpart. AUDUSD is currently forming wave А(С) or shortened С inside the bearish wave А(С)/С of wave level Daily. The closest major levels of support are 0.9983, 0.9947, 0.9912. The current downswing will be completed once the price breaks and consolidates above 1.0142 (as shown below):
Yesterday, on May 22nd, Ben Bernanke held a speech in the US Congress. This time, the Congress considered the possibility of curtailing the existing QE program prematurely because the programs seemed to have given positive results.
These days, anyone can make money trading Forex and other financial markets. The opportunities are almost endless. Still most traders still lose in the long run. While some lack experience and skills, others fall prey to emotions or fail to stick to sound money management. There are many reasons for losses. Few people actually make money in the long run because they treat trading seriously like a full-time job and work hard to achieve their goals. They use technical and fundamental analyses and strictly observe money management rules. They use various tricks and techniques to put the odds in their favor.
Apparently, beginners have difficulty trading financial markets without knowledge, skills and experience. Becoming a professional trader requires diligence, patience and time.
However, today’s Forex industry offers riskless moneymaking opportunities, which require no trading skills. You can make money without trading Forex. One of such opportunities is offered by FBS, a major Forex broker. The broker claims to offer “The most profitable and efficient IB Program on Forex”…
Yesterday, on May 21st, was a notable day for the eurozone. The Euro Parliament approved the Euro Group’s idea to use major deposits over €100 000 in emergency situations to save a risky bank. Deposits under €100 000 are ensured by the compensation scheme.
Most beginning traders are sure that it is possible to trade Forex profitably and easily. They usually assume that perfunctory knowledge is enough to make money in financial markets in general and Forex in particular. Alas, they are wrong. Obviously, it is possible to trade Forex profitable. However, it cannot be done without specific knowledge, skills and experience.
This delusion is the main reason why they lose in the long run. As a result, most of those losing beginners get disappointed at Forex and abandon the idea of becoming a winning trader forever. Some of them even start call it a scam or fraud. Some of them put the blame on brokers while others refer to bad luck.
Essentially, Forex has nothing to do with scams. Apparently, you may come across some dirty broking companies but that has nothing to do with Forex itself. Besides, such scammers can easily be avoided by following a few simple rules. However, this is another story (Masterforex-V Academy told us many times how to choose a reliable broker).
Today, on May 20th, Forex started a new trading week. There have been no radical changes in the market of EURUSD so far. The previous bearish move was elongated by some 200 points. The price keeps developing the ABC pattern of wave level Daily. The move hasn’t reached any of the given targets so far.
It seems like more and more experts feel bearish on the near-term prospects of the common European currency. Some of them say that EURUSD may even drop down to 1,15 in late 2013. If this is the case, this will be the lowest level in 10 years.