Weekly Trading Forecasts on Major Pairs (December 26 - 30, 2016)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish
This pair trended downwards on Monday and Tuesday, and then began to make some bullish attempt, all in the context of a downtrend. A strong movement is not anticipated this week (although it is a possibility), for the market may not do more than it did last week. No matter what happens, there is not going to be an end to the current bearish outlook this year. In fact, price may test the support lines at 1.0400 and 1.0350.

USDCHF
Dominant bias: Bullish
USDCH merely zigzagged throughout last week, with no directional movement. The overall bias is bullish, and thus, when momentum returns to the market, it may be in favor of the bias. Just like EURUSD, strong movement is not expected this week (but it can happen). There are resistance levels at 1.0300 and 1.0350. As long as price does to go below the psychological level at 1.0000, the outlook on the market would remain bullish.

GBPUSD
Dominant bias: Bearish
GBPUSD dropped 250 pips last week, giving more and more emphasis on current weakness in the market. Price closed below the distribution territory at 1.2300 on Friday, targeting the accumulation territories at 1.2250, 1.2200 and 1.2150. There are huge Bearish Confirmation Patterns in the daily and 4-hour charts, which make long trades illogical at the present. A very strong bearish movement may be witnessed on GBPUSD before the end of the year.

USDJPY
Dominant bias: Bullish
The market consolidated throughout last week. The major bias is bullish, and that is supposed to continue till the end of this year. There may be a rise in momentum, which may push price towards the supply levels at 117.50, 118.00, and 118.50. These supply levels were previously tested this month, and they could be tested again. Only a movement of about 200 pips to the south could threaten the current bias.

EURJPY
Dominant bias: Bullish
This currency instrument trended downwards on Monday and then moved sideways till the end of the week, closing at 122.515 on Friday. There would soon be a directional movement in the market, but right now, it is better to stay away until that happens (unless scalping is being done in the market). A movement below the demand zone at 120.50 would end the bullish bias, while a movement above the supply zones at 123.50 and 124.00 would strengthen it.

This forecast is concluded with the quote below:

“[In trading] I choose joy over disappointment and contentment rather than instant gratification.” - D. R. Barton, Jr.

Copyright: Tallinex.com

Weekly Trading Forecasts on Major Pairs (December 26 - 30, 2016)

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Weekly Trading Forecasts on Major Pairs (December 19 - 23, 2016)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish
EURUSD trended downwards last week, just as it was expected. Price moved sideways from Monday till Wednesday, when it started dropping further downwards. The support line at 1.0400 was tested, and although price closed above it, it would be tested again. The outlook on EURUSD is bearish for this week. So we may see further bearish movements which may enable price to break the support lines at 1.0400, 1.0350 and 1.0300 to the downside. Eventually, EUR might reach parity with USD.

USDCHF
Dominant bias: Bullish
In exact opposite manner to EURUSD, this market underwent a shallow bearish retracement within December 12 and 14. Price went up significantly on December 14, moving briefly above the resistance level at 1.0300, and later closing below it. USDCHF would continue to make rally attempts, though it would come across some challenges this week. While bearish corrections could be contained around the support levels of 1.0050 and 1.0000, the resistance levels at 1.0300 and 1.0400 would be the targets for this week.

GBPUSD
Dominant bias: Bearish
This market consolidated on Monday and Tuesday, to drop southward on Wednesday, according to forecast last week, in the context of a downtrend. The accumulation territory at 1.2400 has been tested again and again, but there is a considerable amount of opposition to the bearish movement, around the accumulation territory. Price would go below it this week, owing to the fact that the bias on GBPUSD (as well as some GBP pairs), remains bearish for this week and for the rest of this month. Price would still go downwards by a minimum of 300 pips before the end of this year.

USDJPY
Dominant bias: Bullish
According to last week analysis, this trading instrument went upwards 300 pips last week, after moving sideways on Monday and Tuesday. Since November 9, price has trended northwards more than 1700 pips; and the northward movement could continue this week. There is Bullish Confirmation Pattern in the market and the supply levels at 118.50 and 119.00 may be tested this week. As from now on, the movements on JPY pairs would be determined by strength of individual currency, not the weakness in Yen. This means USDJPY could rally further while GBPJPY could plummet.

EURJPY
Dominant bias: Bullish
There are going to be serious movements in the JPY markets this week (while next week would be quiet), and EURJPY would not be an exception. This is a bull market, and while there may be occasional pauses and consolidation along the way, there could be further bullish movement. However, the ongoing weakness in EUR could scuttle this expectation. As long as price does not cross the demand zone at 121.00 to the downside, the bullish bias would hold.

This forecast is concluded with the quote below:

“In order to taste success in the trading market, you'll need to develop really simple strategies. You're likely to take trading decisions in a more confident way, remain headstrong and gain more winning opportunities when you follow some really simple strategies.” - Sean Lee

Copyright: Tallinex.com

Weekly Trading Forecasts on Major Pairs (December 19 - 23, 2016)

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Weekly Trading Forecasts on Major Pairs (December 12 – 16, 2016)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish
This pair made some bullish attempt in the first few days of last week. Price rallied 300 pips, testing the resistance line at 1.0850, before it began a serious bearish movement. The bullish gains that were initially made last week, were eventually lost as price plummeted, to close just above the support line at 1.0550, after testing it. The market outlook is bearish for this week, since EUR is expected to continue its weakness while USD would continue gathering stamina. There is a possibility that EUR would reach parity with USD in a foreseeable future.

USDCHF
Dominant bias: Bullish
Last week, USD/CHF moved sideways from Monday till Wednesday, and then started moving upwards on Thursday, in conjunction with the extant bullish bias. Price tested the resistance level at 1.0200, and later closed below it. The outlook on the market is bullish for this week; price could reach the resistance levels at 1.0250 and 1.0300. However, it would also be seen that CHF is rallying versus some major currencies, which may prove to be a challenge for the bullishness of USDCHF.

GBPUSD
Dominant bias: Bearish
Cable went upwards on Monday and Tuesday, reached the distribution territory at 1.2750. Price attempted to stay above that distribution territory, but the attempt was rejected as a southwards movement began, which eventually posed a threat to any bullish signal in the market. Price would move further southwards this week, going below one accumulation territory after the other. The outlook on GBP pairs is bearish for the week.

USDJPY
Dominant bias: Bullish
USD/JPY consolidated from December 5 to 7, and the rallied on December 8 and 9 (though the consolidation started earlier than that). Since the low of November 9, the market has gone up by 1400 pips, and this would continue. As it was forecast every week in the last three weeks, the outlook on this market, and as well as other JPY pairs, remains bullish. The supply levels at 115.50, 116.00 and 116.50 could be reached this week.

EURJPY
Dominant bias: Bullish
There is a conspicuous Bullish Confirmation Pattern on this trading instrument, albeit it is currently volatile. Price has recently swung up and down in the context of an uptrend, but the overall movement would be bullish. The targets for the week are supply zones at 122.00, 122.50 and 123.00, which were all tested last week. The major reason why price is generally bullish here is because there is a serious weakness in Yen, and as long as the weakness continues, EUR (which is weak on its own), would manage to keep on going upwards against it.

This forecast is concluded with the quote below:

“Trading and markets have been a major part of my life for almost 60 years. Trading has been the means through which my family and I have received many blessings.” – Joe Ross

Copyright: Tallinex.com

Weekly Trading Forecasts on Major Pairs (December 12 – 16, 2016)

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Weekly Trading Forecasts on Major Pairs (December 5 - 9, 2016)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish
EURUSD consolidated throughout last week – in the context of a downtrend. A closer look at the market reveals that there has been some consolidation to the upside, and there would be some bullish attempt this week. EUR would rally versus most other major currencies, save USD, which is expected to continue strengthening this week. There are resistance lines at 1.0750 and 1.0800. There are also support lines at 1.0550 and 1.0500.

USDCHF
Dominant bias: Bullish
This pair also consolidated last week; while consolidation to the downside is revealed by a closer look. USD would remain strong this week, and would be seen going upwards against certain major currencies. The challenge is that CHF would also make some rally attempts this week, and thus, USDCHF may find it somewhat difficult to rally massively. There are resistance levels at 1.0150 and 1.0200. There are also support levels at 1.0050 and 1.0000.

GBPUSD
Dominant bias: Bullish
Cable ended a two-week equilibrium phase by breaking out significantly. The breakout was well anticipated and it ended up favoring bulls, as price went up 330 pips last week, slashing through the accumulation territory at 1.2700 and closing above it. This week, Cable would rally versus certain majors (like NZD and AUD), and of course, it is currently rallying against USD. This is something that may continue, but not without challenge from bulls.

USDJPY
Dominant bias: Bullish
This currency trading instrument experienced some bullish movement last week. Price went up 300 pips, testing the supply level at 114.50, and unable to go above that supply level. Price underwent some bearish correction on Friday, but the bullish outlook is far from over. In fact, the outlook on the market this week is also bullish, and further northwards journey is expected. Price would need to go above the supply level at 114.50, and then continue towards the supply levels at 115.00 and 115.50.

EURJPY
Dominant bias: Bullish
This cross underwent a smooth northwards movement last week, topping at 121.88, before closing below the supply level at 121.50. There is a Bullish Confirmation Pattern in the market and further bullish movement could be witnessed this week. There are possible bullish targets at the supply zones of 122.00, 122.50 and 123.00. On the other hand, the demand zones at 120.00 and 119.50 should try to hinder vivid pullbacks this week.

This forecast is concluded with the quote below:

“Over the coming weeks and months, many excellent short, medium and long-term trading opportunities for low risk Forex trades will present themselves. Now is the time to put together your game plan with multiple edges to profit from these trending currency pairs… Whether you want to open investment positions (using the weekly or daily chart), swing trade the 4-hour chart, or day trade the 5 minute charts, the opportunities are going to be plentiful. With these nascent trends, the leverage, the liquidity, and the 24-hour-trading the Forex market offers, you have to ask yourself: why aren’t you trading currencies yet?” - Gabriel Grammatidis (Source: Vantharp.com)

Copyright: Tallinex.com

Weekly Trading Forecasts on Major Pairs (December 5 - 9, 2016)

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Weekly Trading Forecasts on Major Pairs (November 28 – December 2, 2016)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish
Last week, this pair moved largely sideways in the context of a downtrend. A break out of the sideways movement should happen before the end of this week (or next week), which would most probably favor bears. Although this pair is expected to continue its bearishness, especially in December, some bullish effort would take place, which may enable price to go upwards by 200 pips or more, before seeing another bearish correction, eventually. Time would tell whether EUR would reach parity with USD.

USDCHF
Dominant bias: Bullish
Just like EURUSD, USDCHF also consolidated throughout last week, in a context of an uptrend. A breakout should happen before the end of this week, ending the current consolidation. Price is supposed to target the resistance levels at 1.0200 and 1.0300. On the other hand, bullish effort on the part of EURUSD might force USDCHF to retrace temporally southwards, towards the support levels at 1.0100 and 1.0000.

GBPUSD
Dominant bias: Neutral
GBPUSD went flat throughout last week. The flat movement started about two weeks ago and it has resulted in a neutral bias in the near-term, while the major trend in the market remains bearish. A rise in momentum is expected this week, which would most probably favor the dominant bearish trend. The outlook on GBP pairs is bearish for this week, and thus, further southwards movement is expected on GBPUSD.

USDJPY
Dominant bias: Bullish
USDJPY is currently one of the strongest moving currency pairs. Price went upwards 310 pips this week, topping at 113.89, before getting corrected a bit lower on Friday. Since November 9, price has gone upwards by over 1200 pips; plus the outlook on the market is bullish for this week, again (the outlook is also bullish on other JPY pairs). Therefore, occasional pauses and corrections are supposed to be transitory this week, as price goes further north.

EURJPY
Dominant bias: Bullish
This is also a bull market – owing to the strong Bullish Confirmation Pattern present in it. Price went north 250 pips last week, after consolidating on Monday and Tuesday. The supply zone at 120.00 has been tested, and it might be broken to the upside this week, owing to the ongoing buying pressure in the market, brought about by persistent weakness in Yen. After the supply zone at 120.00 is overcome, the next targets would be the supply zones at 130.00 and 140.00.

This forecast is concluded with the quote below:

“Trading and markets have been a major part of my life for almost 60 years. Trading has been the means through which my family and I have received many blessings.” – Joe Ross

Copyright: Tallinex.com

Weekly Trading Forecasts on Major Pairs (November 28 – December 2, 2016)

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Weekly Trading Forecasts on Major Pairs (October 21 - 25, 2016)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish
This pair went downwards last week, going below the resistance lines at 1.0650 and 1.0600. Since November 9, price has come down more than 700 pips, leading to a very strong bearish bias on the market. There is a possibility of further downwards movement, which could enable price to reach for the support lines at 1.0550, 1.0500 and 1.0450. This expectation would hold only as long as USD does not showcase any noticeable weakness.

USDCHF
Dominant bias: Bullish
USDCHF moved upwards by 215 last week. Price managed to go above the psychological level at 1.0000, now at the resistance level of 1.0100. Price has gone upwards reluctantly so far, and there is a possibility that it would make further bullish effort this week. There is another potential target at the resistance level of 1.0200, but the further the market goes upwards, the higher the chances of a large pullback. The bullish bias would hold as long as USD does not lose stamina.

GBPUSD
Dominant bias: Bearish
GBPUSD underwent a vivid bearish correction throughout last week – an action that has resulted in a bearish signal in the short and long terms. Long trades are currently not prudent in this market, unless price action reveals that things are conspicuously bullish. Right now, the market is in a downtrend, and only short trades should be sought. Rallies would offer opportunities to go short at better prices.

USDJPY
Dominant bias: Bullish
There is a strong Bullish Confirmation Pattern on USD/JPY. Since the low of November 9, the pair has shot skywards by over 960 pips. Apparently, this is one of the strongest directional movement in recent months, and the supply levels at 111.00, 111.50 and 112.00 could be attained this week. The outlook on JPY pairs remains bullish for this week (just as bullish movements were forecast for most JPY pairs last week).

EURJPY
Dominant bias: Bullish
This cross also went bullish last week, fuelled by the buying pressure in the market, and as a result of weakness in Yen. Because Yen is so weak that, even weak currencies like EUR and GBP could manage to rally versus it. In case a currency is strong in its own right, just like the case of USD, the rally against Yen would be strong and fast indeed. As long as Yen does not become strong conspicuously, the northward movement on EURJPY would continue. The supply zones at 118.00 and 118.50 are being watched this week.

This forecast is concluded with the quote below:

“YOU are the biggest factor in your trading success…” – Dr. Van. Tharp

Copyright: Tallinex.com

Weekly Trading Forecasts on Major Pairs (October 21 - 25, 2016)

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Weekly Trading Forecasts on Major Pairs (October 14 - 18, 2016)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish
This pair started a bearish movement on Monday, which was briefly interrupted by a massive rally, caused by the U.S. presidential elections results. Price rallied 280 pips on Wednesday and started coming down that day, forming a Bearish Confirmation Pattern in the market. The support line at 1.0850 is almost being breached to the downside. While the support lines at 1.0850 and 1.0800 could be breached this week, there is also a possibility of rallies in the market (especially when USDCHF pulls back again).

USDCHF
Dominant bias: Bullish
USDCHF moved sideways on Monday and Tuesday, and plunged seriously on Wednesday, November 9. The bearish plunge was quickly recovered as price rallied massively 290 pips that day, from a low of 0.9549, leading to a bullish signal in the market. Price could now target the resistance level at 0.9900, 0.9950 and lastly, 1.0000. However, a great challenge remains at the resistance level at 1.0000, which is a psychological level. In case price is unable to go above that psychological level, there could be a clear bearish correction.

GBPUSD
Dominant bias: Bullish
Cable remains bullish in the near term, and bearish in the long term. The market is quite choppy, having consolidated from Monday to Thursday (in the context of a near-term uptrend), and then going upwards vividly on Friday. Further upward movement is anticipated this week, as the bias on the market remain bullish. The distribution territories at 1.2650, 1.2700 and 1.2750 may be targeted this week. The distribution territory at 1.2650 was tested last week, and it could be tested again, and a northward movement of 500 pips more, would cause a bullish signal in the daily chart also.

USDJPY
Dominant bias: Bullish
As it was forecast last week, JPY pairs really made bullish attempts. The bullish journey started on Monday and it was briefly interrupted on Wednesday as there were temporary massive sell-offs on USDJPY. Price plunged by roughly 400 pips on Wednesday and rallied on the same day, plus Thursday, and consolidated on Friday. The market is currently above demand levels at 106.00 and 106.50, targeting the supply levels at 107.00, 107.50 and 108.00 this week. The outlook on most JPY pairs remains bullish for this week (with possible exceptions of AUDJPY and NZDJPY).

EURJPY
Dominant bias: Bullish
The movement on this currency trading instrument was not as strong as that of USDJPY. The market is quite choppy while the outlook on it remains bullish. Should EUR gather some stamina this week, there could be more predictable bullish movement. Initial targets on the upside are the supply zones at 116.50 and 117.00. For price to go above these targets, persistent buying pressure is needed.

This forecast is concluded with the quote below:

“Take every trade that the system generates because you do not know where the returns are going to be generated.” – Chris Tate

Copyright: Tallinex.com

Weekly Trading Forecasts on Major Pairs (October 14 - 18, 2016)

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Weekly Trading Forecasts on Major Pairs (October 7 - 11, 2016)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bullish
From the weekly low of 1.0935, this pair went upwards by over 200 pips, to close above the support line at 1.1100 on Friday. Price is now close to the resistance line at 1.1150, and a breach of that resistance line would enable price to go towards another resistance lines at 1.1200 and 1.1250. As long as the support line at 1.1000 is not broken to the downside, the bullish signal, which has formed in this market, would remain valid.

USDCHF
Dominant bias: Bearish
USD/CHF was unable to go above the psychological level at 1.0000. An attempt to do that on October 25 was quickly forestalled – even before that psychological level was even tested. It has been mentioned that failure to breach the level might result in a serious pullback, and that was exactly what happened. Price pulled back significantly last week, to close below the resistance level at 0.9700 on Friday. This 210-pip bearish movement has resulted in a Bearish Confirmation Pattern in the market and further price decline is a possibility this week (unless USD gathers some stamina).

GBPUSD
Dominant bias: Bullish
Following a few weeks of consolidation, GBPUSD rallied massively last week. Price went upwards 370 pips, to test the distribution territory at 1.2550. The bias has already turned bullish in the short term (though it would take another 1000-pip movement to the upside, before the bias on the daily chart can turn bullish). Right now, there is a strong buying pressure in the market and this should continue this week. Unless USD gathers lots of stamina, bulls would be able to reach the distribution territories at 1.2650, 1.2700 and 1.2750.

USDJPY
Dominant bias: Bearish
USDJPY consolidated on Monday and then plummeted on Tuesday. While going south, the demand level at 102.50 was almost tested, and this has brought an end the recent bullish bias. The demand level at 102.50 would eventually be tested, and probably breached to the downside. However, there is also a possibility that JPY pairs would make some bullish attempts this week, which could also be reflected on USDJPY.

EURJPY
Dominant bias: Bullish
This trading instrument did not move very much last week. Unlike USDJPY, it was engaged in a slight bearish correction in the middle of last week; and the corrective actiion was ended on Friday as the market closed on a bullish note. This week, whatever happens to EUR would have some impact on the market. Before the end of the week, price would have gone either above the supply zone at 115.50 or below the demand zone at 113.50.

This forecast is concluded with the quote below:

“I'm a full time trader. Nothing else…For all of you guys that think trading full time isn't possible, well I'm here to tell you it is. I actually met another full time trader the other day at the basketball court (trading for 20 years) and he trades millions of dollars. So I don't understand why people think that trading full time a myth...” – MarketAddict (Source: Elitetrader.com)

Copyright: Tallinex.com

Weekly Trading Forecasts on Major Pairs (October 7 - 11, 2016)

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Weekly Trading Forecasts on Major Pairs (October 31 – November 4, 2016)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish
This pair moved sideways last week, and then traded upwards on Friday. However, that was not significant enough to result in any bullish signal. The bias on the market remains bearish, and what happened on Friday could turn out to be a short-selling opportunity. The outlook on EUR pairs is bearish for this week, and therefore EURUSD would keep on being bearish. Price may thus test the support lines at 1.0900, 1.0850 and 1.0800 this week. The only thing could help bulls here is a large pullback on USDCHF, which is not likely this week.

USDCHF
Dominant bias: Bullish
This trading instrument has managed to climb above the resistance level at 0.9900, before bears pushed back the price below it. The market has been consolidating for two weeks, though the bullish outlook remains valid. The outlook on USD is bullish for this week and this month, which means most major currencies would be weakened against it. USDCHF would make bullish attempts but there is a very difficult resistance level at 1.0000, which would require lots of buying pressure to breach. Should bulls fail to breach that resistance level, a pullback may materialize.

GBPUSD
Dominant bias: Bearish
Cable has been moving sideways for two weeks, which has resulted in a neutral bias in the short-term. The long-term bias is bearish, and when momentum rises, it may favor bears. The outlook on the market is bearish for this week, and rallies should be disregarded, for they would be transitory and cannot be significant enough to bring an end to the current long-term bearish outlook. In November, large movements would be witnessed on GBP pairs, and they would undergo bearish movements in most cases.

USDJPY
Dominant bias: Bullish
As it was mentioned in the last forecast, USDJPY has become bullish. Price moved upwards by 170 pips last week, to test the supply level at 105.50. The bearish correction that was seen on October 28 was just another opportunity to buy long when things are on sale, in the context of an uptrend. The most probable movement for JPY pairs is bullish for this week, though the situation may change before or by the end of November.

EURJPY
Dominant bias: Bullish
In spite of the weakness in EUR, the EURJPY cross rallied by 230 pips last week. Price closed at 115.11 on Friday, after forming a clear Bullish Confirmation Pattern in the 4-hour chart. The current price action shows that bulls are still willing to push price further north, which may make price to reach the supply zones at 115.50, 116.00 and 116.50 this week. After all, it is expected that JPY pairs would make some bullish attempts in the week.

This forecast is concluded with the quote below:

“Earning a trading income compared to earning an occupation income is just so damned rewarding!” – Louise Bedford

Copyright: Tallinex.com

Weekly Trading Forecasts on Major Pairs (October 31 – November 4, 2016)

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Weekly Trading Forecasts on Major Pairs (October 24 - 28, 2016)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish
EURUSD dropped by over 100 pips last week. Price has dropped by more than 300 pips since October 10, resulting in a Bearish Confirmation Pattern in the market. The outlook on EURUSD (and other EUR pairs) is bearish for this week. Therefore, slow and steady downward movement is expected on EURUSD and the support lines at 1.0850 and 1.0800 could be tested this week. Rallies would proffer opportunities to sell short at better prices.

USDCHF
Dominant bias: Bullish
Bulls laid a decisive siege at the support level at 0.9900 (formerly a resistance level) from October 12 to 20. It was already forecast that bulls would not find it easy to break the level at 0.9900 to the upside. On October 20, bears gave way to the persistent bullish pressure, partly due to existing stamina in USD. Price was able to close above the support level at 0.9900 after testing the resistance level at 0.9950, and retracing. This week, further bullish movement is possible in the market, because USD is strong and because CHF would be weak this week. Some currencies would rally versus CHF and this would help USDCHF to go more northward, though a significant bullish movement is not likely.

GBPUSD
Dominant bias: Bearish
GBPUSD made a shallow rally attempt from Monday to Wednesday and then consolidated till the end of the week. As it was hinted in the last forecast, this week would witness more volatility on GBP pairs when compared to last week. This means the present consolidation on GBPUSD would end as momentum rises, though the outlook on GBP pairs is bullish for this week. In case GBPUSD rallies, we would not anticipate a serious threat to the extant dominant bias in the market.

USDJPY
Dominant bias: Bullish
USDJPY went sideways throughout last week – a situation that could be termed a sideways movement in the context of an uptrend. The outlook on JPY pairs is bullish for this week, and USDJPY might be able to rise towards the supply levels at 104.50, 105.00 and 105.50. This is a situation that could lead to a strong Bullish Confirmation Pattern in the 4-hour chart. The supply levels at 103.00 and 102.50 would serve to restrict large pullbacks this week.

EURJPY
Dominant bias: Bearish
There is a bearish signal on this trading instrument, as price dived by 170 pips last week. One great factor that has contributed to this bearish signal is the weakness in EUR itself, and the only factor that could effect any rally on this instrument is the fact that Yen could become weak (thereby causing JPY pairs to rally this week). In case EUR becomes weaker than Yen, price would fall further. A factor that causes Yen to become weaker than EUR would bring some rally in the market.

This forecast is concluded with the quote below:

"When you understand the rules of the game, you can play the game like a master..." – James Altucher

Copyright: Tallinex.com

Weekly Trading Forecasts on Major Pairs (October 24 - 28, 2016)

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Weekly Trading Forecasts on Major Pairs (October 17 - 21, 2016)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish
This pair trended downwards by 220 pips last week – just as it was expected. Price closed below the resistance line at 1.1000, going towards the support line at 1.0950. Bears may eventually target the support line at 1.0900, but they would meet some opposition at that place. The bias on the market is bearish, and any rallies seen here should be taken as opportunities to sell short at better prices.

USDCHF
Dominant bias: Bullish
USD/CHF was able to trend higher last week, managing to reach the resistance level at 0.9900. Based on the prognosis last week, bulls were unable to push price beyond the resistance level, though they may be able to do that this week, due to the perceived buying pressure in the market. The current price action shows that price is almost above that resistance level. Once price goes above the resistance level, next targets would be other resistance levels at 0.9950 and 1.0000. Once again, it is unlikely that price would go above the psychological level at 1.0000, though USDCHF would remain bullish as long as EURUSD remains bearish.

GBPUSD
Dominant bias: Bearish
Cable plunged last week, reaching the low of 1.2088 on October 11. Price then consolidated till the end of the week. The bias on the market is bearish in the short and long-terms, and thus, it is logical to anticipate another bearish journey once this consolidation ends. This does not rule out a possibility of a rally, which cannot be significant enough to threaten the current bearish bias. The movements on GBP pairs this week would not be as strong as the movements that would be witnessed next week.

USDJPY
Dominant bias: Bullish
This market has managed to maintain its bullish stance; as price continued to trudge northwards. The supply level at 104.50 has been tested and it would be tested again. Some bearish forces would attract the current short-term uptrend, but unless USD itself experiences loss in stamina, the bias would not turn bearish. The bullish outlook would remain as long as price does not breach the demand level at 102.00 to the downside.

EURJPY
Dominant bias: Bearish
EURJPY has not moved significantly in the short-term, though a closer look at the market reveals that bears have upper hands over bulls. As long as EUR is somewhat weak, price may face some difficulties in going up. Price is currently below the supply zone at 114.50, and it may test the demand zones at 114.00 and 113.50 this week. On the other hand, a movement above the supply zone at 116.00 would result in a clear bullish signal.

This forecast is concluded with the quote below:

“My belief is that the markets are a very friendly place. Whatever you want in life, the markets will find a way to give it to you. I’m not being facetious here.” – Dr. Van K. Tharp

Copyright: Tallinex.com

Weekly Trading Forecasts on Major Pairs (October 17 - 21, 2016)

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Weekly Trading Forecasts on Major Pairs (October 10 - 14, 2016)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Neutral
This pair remains neutral in spite of strong volatility witnessed on other pairs and crosses last week. Price simply went below the support line at 1.1150 and then moved towards the resistance line at 1.1200, closing at 1.1200. The neutral bias would persist for some time, but a strong momentum is expected soon. Price needs to go above the resistance line at 1.1350, or below the support line at 1.1050, before it could be said that the neutral bias is over. This week, the most probable direction for EURUSD and some other few EUR pairs, is downwards.

USDCHF
Dominant bias: Bullish
This currency trading instrument is neutral in the long term, but bullish in the short-term. Price went upward on Monday and Tuesday, nosedived on Wednesday, and went upwards again on Thursday and got corrected again on Friday. While it is possible for this instrument to go further upwards, the movement would be limited, because it is unlikely that price would be able to go above the resistance level at 0.9900.

GBPUSD
Dominant bias: Bearish
There is a strong Bearish Confirmation Pattern on GBPUSD market, and most other GBP pairs. As it was predicted last week, price dropped sharply by 880 pips, reaching a low of 1.2031. This is a persistent bearish trend. After that, price bounced back by 420 pips, to close at 1.2421. What next? Well, the forecast for this week is that, GBPUSD would be bullish (which is also true of a few other GBP pairs). Price would go visibly upwards this week, but that would not be significant enough to override the currently long-term bearish outlook on the market.

USDJPY
Dominant bias: Bullish
As it was anticipated, USDJPY broke upwards last week, ending the recent equilibrium phase in the market. Price shot skywards by 280 pips, testing the supply level at 104.00 and the getting corrected by 100 pips. Price closed below the supply level at 103.00 on Friday, and that could be a good opportunity to seek long trades when things are on sale, and in the context of an uptrend. The outlook on JPY pairs remain bullish for this week, so price could go upwards again by at last, 150 pips this week.

EURJPY
Dominant bias: Bullish
Just like USDJPY, EURJPY went upwards seriously last week, testing the supply zone at 116.00 pips, before getting corrected by 90 pips. There is a Bullish Confirmation Pattern on the market, and further upwards movement could happen this week, thereby ending the current bearish correction. From the current locating, price may go towards the supply zones at 115.50, 116.00, and 116.50.

This forecast is concluded with the quote below:

“I learned that the market truly is your greatest teacher and that trading is a skill you must nurture and develop. The more time you spend in the market, the better you are able to understand market movements.” - Michael Patak

Copyright: Tallinex.com

Weekly Trading Forecasts on Major Pairs (October 10 - 14, 2016)

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Weekly Trading Forecasts on Major Pairs (October 3 - 7, 2016)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Neutral
This pair did not do anything significantly last week, save moving briefly above the resistance line at 1.1250 and testing the support line at 1.1150. The bias has become neutral in the short and long terms, and this is supposed to continue until price goes out balance, which should happen before the end of the week or next. The outlook on EUR pairs is bearish for the month of October (except in a few cases), therefore, EURUSD could be seen going lower in the month.

USDCHF
Dominant bias: Bearish
This currency trading instrument is bearish in the short-term, but neutral in the long-term. Bulls made visible effort to push the instrument upwards but bears did not allow this to happen. Although the outlook is bearish in the short-term, price did nothing more than testing the resistance level at 0.9750 and support level at 0.9650. There should be a rise in momentum this week, and USDCHF would rally only when EURUSD falls sharply.

GBPUSD
Dominant bias: Bearish
GBPUSD is bearish in the long and short terms. Price simply moved sideways last week, although Bearish Confirmation Patterns are still visible in the 4-hour and daily charts. Further bearish movement is anticipated this week, which should drive price towards the accumulation territories at 1.2900, 1.2850 and 1.2800. Rallies in this market would invariably turn out to be traps for bulls; and of course, good short-selling opportunities. The accumulation territory at 1.2950 is currently doing a good job preventing further downside move: though it could give way very soon. In the month of October, the outlook on GBP pairs is strongly bearish, and large downside movements would be witnessed, except in a few cases.

USDJPY
Dominant bias: Neutral
USDJPY is neutral in the short-term. In fact, the overall condition on the market has been a kind of consolidation throughout September 2016. Further sideways movement would result in a neutral bias in the long-term as well, but there is a high possibility that price may start trending seriously before the end of this week, which could result in a bearish or bullish signal forming in the 4-hour chart.

EURJPY
Dominant bias: Neutral
The condition on EURJPY is quite similar to the condition surrounding USDJPY. Price consolidated between the demand zone at 112.50 and the supply zone at 114.00, throughout last week. This week, a rise in momentum is expected which would take price above the aforementioned supply zone, or below the demand zone, resulting in a bearish or bullish bearish in the short-term.

This forecast is concluded with the quote below:

“I am now doing things I have a passion for and am full time trading.” – Stefan Carling

Copyright: Tallinex.com

Weekly Trading Forecasts on Major Pairs (October 3 - 7, 2016)

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Weekly Trading Forecasts on Major Pairs (September 26 - 30, 2016)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bullish
EURUSD is bullish in the short-term, but neutral in the long-term. Against the volatility contraction in the higher time-frames, bulls managed to push price above the support line 1.1200. The next targets are around the resistance lines at 1.1250 and 1.1300, which would require strong buying pressure to be breached to the upside. The support lines at 1.1150 and 1.1100 would act as barriers to bearish attempts along the way.

USDCHF
Dominant bias: Bearish
This market is bearish in the short-term, but neutral in the long-term. Despite low volatility in the higher time-horizons, bears managed to push price below the resistance level at 0.9750, now close to the support level at 0.9700. The targets for this week are around the support levels at 0.9650 and 0.9600, which would require strong selling pressure to be breached to the downside. The resistance levels at 0.9750 and 0.9700 would act as barriers to bullish attempts along the way.

GBPUSD
Dominant bias: Bearish
The dominant bias on GBPUSD is bearish. As it was mentioned in the last weekly forecast, price went down last week in spite of desperate opposition from bulls, who left their traces in the market. Short trades are not logical in this market because of the current price action, and because the outlook on GBP pairs remains bearish for this week. Thus, the accumulation territories at 0.2900, 0.2850 and 0.2800 could be tested before or by Friday.

USDJPY
Dominant bias: Bearish
This instrument consolidated in the first few days of last week, dropped in the middle of the week and experienced a slight upwards correction around the end of the week. There is a Bearish Confirmation Pattern in 4-hour and daily charts, which signal further bearish movement. The demand levels at 100.50 and 100.00 could be tried this week. The bearish bias would hold out until the supply level at 104.00 is overcome – something that may not happen soon.

EURJPY
Dominant bias: Bearish
This cross pair dropped significantly last week, moving briefly below the demand zone at 112.50 before the recent bullish effort in the context of a downtrend. The bullish effort could be seen as another opportunity to sell short at slightly higher prices (since the outlook on the cross pair is bearish). The demand zones at 113.00, 112.50 and 112.00 could be tried this week or next. The only thing that can overturn the current bearish outlook is a 300-pip movement to the upside.

This forecast is concluded with the quote below:

“I read charts like some people read the newspaper. My world revolves quite a bit around what I see on the charts.” – Joe Ross

Copyright: Tallinex.com

Weekly Trading Forecasts on Major Pairs (September 26 - 30, 2016)

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Weekly Trading Forecasts on Major Pairs (September 19 - 23, 2016)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish
EUR/USD moved sideways last week, from Monday till Thursday, and then broke downwards by 85 pips on Friday. Had price failed to break downwards on Friday, the bias would have become neutral in the short-term. Now, the bias is bearish, and price might test the support lines at 1.1100 and 1.1050 this week. This bearish bias would be valid until the resistance line at 1.1300 is breached to the upside.

USDCHF
Dominant bias: Neutral
Although this pair trended upwards on Friday, September 16, the movement was not significant enough to cause a clear bias on the market. Price has tested the resistance level at 0.9800, and it has almost breached it. A movement above the resistance line at 0.9850 would result in a bullish bias, and a movement above the resistance level at 0.9900 would result in a stronger bullish bias, although it would be a kind of difficult for bulls to move price above that level (0.9900). A movement below the support level at 0.9650 would cancel the neutral bias and result in a bearish signal.

GBPUSD
Dominant bias: Bearish
GBPUSD dropped 280 pips last week, closing below the distribution territory at 1.3000 on Friday. The bias on the market is bearish in the long-term and the short-term. There is a Bearish Confirmation Pattern in the market and price is expected to reach the accumulation territories at 1.2950, 1.2900 and 1.2850 this week (unless something fundamental changes the stance). GBP pairs, except EURGBP, are currently bearish.

USDJPY
Dominant bias: Neutral
This instrument moved within volatility contraction throughout last week, which has resulted in a neutral bias in the near-term. Price moved within the demand level at 103.50 and the supply level at 101.50. This week, the most probable direction is southwards, which would become visible as momentum increases in the market. There is a strong indication that JPY pairs would go bearish this week, just in conjunction with the long-term bearish outlook on them.

EURJPY
Dominant bias: Bearish
This cross pair went down on Monday and went up on Tuesday. On Wednesday, price topped at 116.08, and began to move south from that day until the market closed on Friday. That was a southward movement of about 200 pips, which has brought about a bearish signal in the market. Since the outlook on JPY pairs is bearish for this week, it is possible that the demand zones at 113.50 and 113.00 would be tried this week.

This forecast is concluded with the quote below:

“It's tempting to tell ourselves that “it’s OK to wait” and “the market will always be there” – as we give ourselves excuses for not taking the next trade. But let’s face facts. If you sit on the sidelines for too long, you may just miss out on the opportunity that will double your trading equity.” – Louise Bedford

Copyright: Tallinex.com

Weekly Trading Forecasts on Major Pairs (September 19 - 23, 2016)

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Weekly Trading Forecasts on Major Pairs (September 12 - 16, 2016)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bullish
This pair went upwards last week, testing the resistance line at 1.1300 and then getting corrected downwards. The bullish bias remains valid, though it looks like an unclear thing. Therefore, the pair is expected to trend further higher this week (for EUR would gain more stamina while USD would be weakened further), re-testing the resistance line at 1.1300, breaking it to the upside and heading towards another resistance line at 1.1350. Some EUR pairs have already started journeying upwards.

USDCHF
Dominant bias: Neutral
There is yet no clear outlook on USDCHF, as price simply swung downwards and then upwards last week. There is going to be a directional movement this week, which would most probably be downwards. EURUSD could trend upwards (owing to an expected stamina in EUR), causing USDCHF to pull back. Other factors contributing to this are the coming further weakness in USD and a possibility of CHF strengthening (please watch CHF pairs). Bears would thus target the support levels at 0.9700, 0.9650 and 0.9600 this week.

GBPUSD
Dominant bias: Bearish
GBPUSD is bearish in the long-term, though bulls are fighting against all odds, to effect a meaningful rally. Price moved upwards 140 pips in the first few days of the week and started coming downwards from Wednesday. A movement below the accumulation territory at 1.3100 would cause a very strong Bearish Confirmation Pattern to form in the market. On the other hand, a movement above the distribution territory at 1.3450 would result in a near-term bullish outlook.

USDJPY
Dominant bias: Bearish
Last week, this market trended southwards by 260 pips, moving briefly below the demand level at 101.50, before starting a 170-pip rally. The supply level at 103.00 has been tested during the rally attempt. Further upwards movement is possible this week, which could bring an end to the current bearish outlook. In case this happens, the supply levels at 103.50 and 104.00 might be reached.

EURJPY
Dominant bias: Bullish
This currency trading instrument is bullish in the short-term and bearish in the long term. Bearish effort was rendered useless last week, as bulls came in to push price from the demand zone at 114.00 towards the supply zone at 115.50, thereby rendering useless the 200-pip pullback that was witnessed from Monday to Wednesday. Bulls would continue to push price upwards, owing to expectation of further weakness in the Yen. The outlook on JPY pairs is bullish for the week.

This forecast is concluded with the quote below:

“Success in the long run for me is defined as consistently positive returns with a consistency for never losing too much money when things go wrong. For those starting out I think it is very important to develop a trading strategy that will stand a very good chance in working through all business cycles. The world looks very different now to what it looked like in 2006, 1999, 1991, 1982 and is forever changing. Trading strategies that depend on a certain market environment will always get found out when the market environment changes. As a trader you want to be trading from now till the day you drop dead.” Anton Kreil (Source: Traders-mag.com)

Copyright: Tallinex.com

Weekly Trading Forecasts on Major Pairs (September 12 - 16, 2016)

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Weekly Trading Forecasts on Major Pairs (August September 5 - 9, 2016)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish
EURUSD went bearish last week, closing at 1.1152 on Friday. Bulls made serious effort to push price upwards on Thursday and Friday, but bears came with stronger hands to effect a movement to the downside. There are support lines at 1.1100 and 1.1050, which may be tested this week. On the other hand, the resistance lines at 1.1300 and 1.1350 would oppose any meaningful rallies in the market. This bearish bias cannot be overridden until price goes above the resistance line at 1.1350.

USDCHF
Dominant bias: Bullish
USDCHF went bullish last week, closing slightly above the support level at 0.9800 (on September 2). Bears made serious effort to push price downwards on Thursday and Friday, but bulls came in to put a check on this, thereby preventing a serious decline. There are resistance levels at 0.9850 and 0.9900, which may be tested this week. Additionally, support levels at 0.9750 and 0.9700 would check any pullbacks that may occur in the week. This bullish outlook would remain valid as long as price does not go below the support level at 0.9700.

GBPUSD
Dominant bias: Bullish
Cable consolidated in the first few days of the week, and then began moving upwards on September 1. The upwards movement was significant enough to result in a Bullish Confirmation Pattern in the 4-hour chart. Further upwards movement is possible, which might enable price to reach the distribution territories at 1.3400 and 1.3450 this week. We would continue to witness high volatility on Cable and other GBP pairs this week and this month.

USDJPY
Dominant bias: Bullish
USDJPY has been able to sustain the bullish movement it started on August 26, 2016. Since then, price has gone up 400 pips, assayed to stay above the supply level at 104.00, but closing below it on Friday. The outlook on the market, as well as other JPY pairs, has become strongly bullish, and that is the reality right now. This means that USDJPY is expected to continue going north until there is a significant change in the market situation.

EURJPY
Dominant bias: Bullish
As it was expected, the protracted equilibrium phase that occurred on this cross from August 8 to 26, 2016 has ended. Price has rallied by approximately 290 pips since then, currently making effort to settle above the supply zone at 116.00, which is trying to aid bears in their current losing battle. Bulls have to overcome that supply zone in order to effect further rally, which is anticipated for this week. Since JPY is now weak, any currencies (like GBP) which become strong would enjoy massive gains versus the Yen.

This forecast is concluded with the quote below:

“The world's most successful traders believe in themselves and their ability to win. In fact, many of them feel that they “own” the market. They are not necessarily being arrogant, but they are sure of themselves and that they are able to take profits out of the market.” – Andy Jordan

Copyright: Tallinex.com

Weekly Trading Forecasts on Major Pairs (August September 5 - 9, 2016)

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Weekly Trading Forecasts on Major Pairs (August 29 – September 2, 2016)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bullish
The bias on this pair is precariously bullish. Price came down 120 pips on Friday, in the context of a weak uptrend. A movement below the support line at 1.1100 would result in a clean Bearish Confirmation Pattern in the market, while a movement above the resistance line at 1.1350 would strengthen the ongoing bullish bias on the pair. This week would determine whether things would turn bearish or things would become more bullish in the market.

USDCHF
Dominant bias: Bearish
Just as it was prognosticated last week, a short-term weakness of CHF (which was weak versus other majors as well), coupled with a noticeable bullish effort on EURUSD, was able to cause a rally on USDCHF, which rallied 170 pips last week. USD also became strong in its own right, especially on Friday, August 26, 2016. Therefore, USDCHF would continue going up as long as the factors mentioned above continue to favor it, which might cause a Bullish Confirmation Pattern to form in the market; otherwise there would be a serious pullback.

GBPUSD
Dominant bias: Bullish
GBPUSD is bullish in the short-term and bearish in the long-term. Price went north 200 pips to test the distribution territory at 1.3250, before it experienced a pullback on Friday. However, the short-term bias remains bullish, provided that price does not go below the accumulation territories at 1.3000 and 1.2950. GBP pairs would undergo high volatility in September 2016: in contrast to lower volatility witnessed this month.

USDJPY
Dominant bias: Neutral
This currency trading instrument is neutral in the short-term, but bearish in the longer term. The instrument underwent a very tight consolidation between Monday and Thursday, only to break upwards on Friday. The upwards break has not invalidated the neutral bias on the market, unless price goes above the supply levels at 103.00 and 103.50. There is also a possibility of a pullback to the demand levels at 101.00 and 100.50. The outlook on JPY pairs is bearish for the month of September, which means, bears are expected to be the overall winners in the month.

EURJPY
Dominant bias: Neutral
EURJPY is neutral in the near term and bearish in the long-term. The cross has been moving sideways for the past three weeks, while the trend on higher timeframes remains bearish. The bullish breakout that occurred on Friday could end up being a false breakout, should price fail to keep on moving north. Since the outlook on JPY pairs remains bearish, a pullback into the demand zone at 113.00 is possible, though strong selling pressures would be needed for the demand zone to be breached to the downside.

This forecast is concluded with the quote below:

“A seed was planted in my mind. It took a few years for it to grow. When it did, I realized that what I really love is trading — the pursuit of actively trying to beat the market. And so I guided my life into that role. It took a while, but finally I succeeded. For the past 15 years, I have been a full-time trader.” - Jim Totaro (Source: Collective2)

Copyright: Tallinex.com

Weekly Trading Forecasts on Major Pairs (August 29 – September 2, 2016)

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Weekly Trading Forecasts on Major Pairs (August 22 - 26, 2016)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bullish
EURUSD went upwards 200 pips last week, testing the resistance line at 1.1350 before the current shallow retracement. Price may be able to target the resistance lines at 1.1400 and 1.1450 this week, but bulls might encounter some challenges doing this. There is a possibility of a pullback, which might bring another opportunity to go long at a lower price or bring an end to the current bullish outlook on the market.

USDCHF
Dominant bias: Bearish
USDCHF went in the opposite direction to EURUSD, moving briefly below the support level at 0.9550, and then closing at 0.9600 on Friday. There is a Bearish Confirmation Pattern in the market, which means it may continue trending downwards, on the condition that EURUSD would continue trending upwards; otherwise a rally would ensue. A show of weakness in EURUSD and CHF (for CHF could experience some weakness against the majors this week) would help to bring about a rally in USDCHF.

GBPUSD
Dominant bias: Bearish
GBPUSD went upwards from Tuesday to Friday last week, pulling back by over 130 pips on Friday, and closing above the accumulation territory at 1.3050. The bearish outlook remains in place, unless price goes upwards by at least, another 300 pips from the current location. Without this condition being fulfilled, GBPUSD might experience a further pullback, which might possibly be aided by a bearish movement on GBPCAD (since CAD would rally against other pairs this week). GBPCAD and GBPUSD sometimes get positively correlated. At times, it is helpful to know how conditions surrounding other pairs and crosses affect the instrument we focus on.

USDJPY
Dominant bias: Bearish
This pair declined 170 pips on August 15 and 16, and then moved sideways for the rest of the week, all in the context of a downtrend. The outlook on the pair, plus other JPY pairs, continues to be bearish (though CADJPY could rally when CAD gains stamina). This week, the demand levels at 100.00, 99.50 and 99.00 might be tested. The demand levels at 100.00 and 99.50 were tested last week, but price could not stay below them.

EURJPY
Dominant bias: Neutral
This cross has been consolidating for the last two weeks; an event which has brought about a neutral bias in the near term (although the bias is bearish in the long-term). Further sideways movement would continue to emphasize the neutral bias, until there is a breakout this week or next, which would most probably favor bears, as price goes towards the demand zones at 112.50, 112.00 and, especially 111.50.

This forecast is concluded with the quote below:

“Now I am devoted to Forex and fully focused on developing my trading strategy to become a full-time trader.” – Lukasz (source: Tradimo)

Source: Tallinex.com

Weekly Trading Forecasts on Major Pairs (August 22 - 26, 2016)

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Weekly Trading Forecasts on Major Pairs (August 15 - 19, 2016)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bullish
This pair consolidated on Monday and went further upwards on Tuesday. Price moved upwards 130 pips, testing the resistance line at 1.1200, to close above the support line at 1.1150. Bulls might push price further upwards this week; however, there is a possibility of a bearish movement on EURUSD, since EUR could become weak versus other majors, save GBP, which is currently weaker than EUR. The current bullish effort would end once price goes below the support line at 1.1050.

USDCHF
Dominant bias: Bearish
There is a “sell” signal on USDCHF, especially in the near-term. There are support levels at 0.9700 and 0.9650, which could be tested this week. Nonetheless, the expected bearish movement on EURUSD might enable USDCHF to stop moving south, and assume a rally that would bring about a Bullish Confirmation Pattern in the market. Without EURUSD getting weak this week, USDCHF would have to continue moving southwards.

GBPUSD
Dominant bias: Bearish
As it was forecast, this market went further south last week, declining by 170 pips and closing below the distribution territory at 1.2950 on Friday. Just like other GBP pairs (except EURGBP), the outlook on the market is bearish for this week, which means that the accumulation territories at 1.2900, 1.2850 and 1.2800 could be tested this week. The only factor that can reverse the current weakness in the market is an expected or unexpected fundamental factor that proves very favorable to GBP or very unfavorable to USD.

USDJPY
Dominant bias: Bearish
According to expectation, this currency trading instrument was able to maintain its bearishness throughout last week, scuttling bulls’ effort to effect a protracted rally. Whenever price rallied, bears would come in to push it downwards again, thereby preserving the current bearish bias on the market. This week, the bearish bias could continue as price goes for the demand levels at 100.50 and 100.00. On the other hand, a possibility of a strong reversal exists, in case JPY gathers strength.

EURJPY
Dominant bias: Bearish
The movement on EURJPY was essentially flat last week, though that has not overridden the current downtrend. Price would need to consolidate further for another week or two before the bias can turn neutral, otherwise, we would witness a continuation of the southward movement or a temporary reversal that would threaten the current bearish bias. A bullish reversal may occur, but it would not last very long, because of a bearish outlook on JPY pairs, and because EUR itself is expected to be weak this week.

This forecast is concluded with the quote below:

“Good trading habits are an important factor in successful trading.” - Gabriel Grammatidis

Copyright: Tallinex.com

Weekly Trading Forecasts on Major Pairs (August 15 - 19, 2016)

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