Weekly Trading Forecasts on Major Pairs (March 3 – 7, 2014)

Here’s the market outlook for this week:

EURUSD

Dominant bias: Bullish

The recently precarious bullish bias on this pair is now established – as a result of a new lease of stamina in the Euro. The Bullish Confirmation Pattern in the chart remains fresh and the price still has more room to move northward. The next target in the market is at the resistance line of 1.3850.  Meanwhile, the support line at 1.3700 remains a barrier to possible bearish attempts along the way. As long as the price stays above the aforementioned support line, the bullish outlook is intact.

USDCHF

Dominant bias: Bearish

Our last target in this market has been exceeded after much hesitation in the market. The price is currently trading below the resistance level at 0.8850, going towards the support level at 0.8800. The ultimate target is at the support level at 0.7850, but it would take some time before the market can reach that place. The southward movement in the chart has been slow and steady, but the bearish bias is strong.

GBPUSD

Dominant bias: Bullish

In spite of a consolidation of about 2 weeks here, the bullish signal on the Cable is still valid.  When momentum returns to the market, it may take the market to the upside (that is the most likely thing to happen). The distribution territory at 1.6800 was tested a few weeks ago, and it is going to be tested again. It is even more likely that the price would breach that distribution territory to the upside and go further towards another distribution territory at 1.6850.

USDJPY

Dominant bias: Bearish

The perpetual weakness of the USD, coupled with the failure of the price to go determinedly upwards, has resulted in a bearish signal on this market. Though the bearish move may be limited, it is not advisable to go long on this market. The best strategies to use here are scalping strategies and intraday trading methods. There is a need for the price to break the support level at 101.50 to the downside and later go towards the next support level at 101.00.

EURJPY

Dominant bias: Bullish  

The situation on this cross requires some tact. An unsure trader may want to go out of the market until there is a clear directional bias. In fact, the best thing to do right now is to stay out of this market until there is a clear directional movement in the price. A movement above the supply zone of 141.00 would lead to a confirmation of a bullish signal; whereas a movement below the demand zone at 139.00 would lead to a confirmation of a bearish signal.

This forecast is concluded with the quote below:

                               

“It may not be a good idea to stubbornly try to trade under market conditions that aren't conducive to your trading style.” – Joe Ross

Source: www.tallinex.com

Eye-opening trading lessons: http://www.harriman-house.com/experttraders