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Sunday, July 14, 2013

Weekly Trading Forecasts (July 15 – 19, 2013)



The recent week was characterized by significant reversals in the markets; an event which led to new confirmed signals on popular pair and crosses. This is especially possible with the new lease of stamina in the EUR and the GBP, as the USD was suddenly caught in exponential weakness. Even the JPY pairs have assumed a new bias (in most cases). The new signals in the markets are expected to continue.

EURUSD
Primary trend: Bullish
It can now been seen that any bearish threats on this pair has already been rejected successfully, as the price rose significantly in the latest development in the market. There is now a clean Bullish Confirmation Pattern on the chart, and the price could go on beyond the resistance lines at 1.3100 and 0.3200 respectively. Within the next several trading days, it would be sensible to seek long trades only.

USDCHF
Primary trend: Bearish
From the weekly high of 0.9750, this pair dived by roughly 300 pips. The price is now trading below its formers support levels (which are now resistance levels). The market appears to be oversold, as indicated by some oscillators, but in reality this means that the market is weak and would continue to trade lower. In the face of this fact, the price may reach the support levels at 0.9400 and 0.9300.

GBPUSD
Primary trend: Bullish
It is clear that some vivid optimism has returned to the market. Could this be called Mr. Carney’s effect? The time would tell whether the new bullish bias would be sustained. However, based on the reality in the market, the Cable is supposed to be going upwards in a significant bullish mode, though that does not rule out occasional bearish pulls, which are not supposed to take the price below the accumulation territory of 1.5000.

USDJPY
Primary trend: Bearish
A ‘sell’ signal has been formed on the USDJPY, following the Bearish Confirmation Pattern that occurred in the market. Since then, the USDJPY has traded sideways so far (for the market is volatile as a result of deadly struggles between buyers and sellers). However, the downward movement ought to resume in earnest. The price could reach the demand levels of 98.00 and 97.00. Meanwhile, the supply level at 100.00 is a barrier to any bullish attempt.

Primary trend: Bullish
When it is said that the major bias on this cross is bullish, it is precariously so. This is because there is no clear directional movement in the price for now: both the EUR and the JPY are a kind of strong, and one would need to be stronger than the other for the market to go upwards or downwards. At the end, the EURJPY would have to respect the overall direction of all the JPY pairs, and until it happens in such manner as a clear signal, no new positions are advised.


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