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Friday, March 21, 2014

Weekly Trading Forecasts on Major Pairs (March 24 - 28, 2014)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish
It should be noted that the surge of strength in the Greenback has resulted in new dominant biases in the markets. This pair has been forced to show a Bearish Confirmation Pattern on it (the GBP/USD has also gone bearish), while the USD/CHF has been showing some stable stamina. This pair has been trading below the resistance line at 1.3800, going towards the support line at 1.3700, which is our target for next week.  

USDCHF
Dominant bias: Bullish
Recently, this pair was in a constant, slow and steady bearish run, but the current strength in the Greenback has changed the situation. There is now an established bullish signal on the pair, and the price is trading above the support level at 0.8800. The ultimate target is at the resistance level of 0.8900; which may even be breached to the upside, provided that the buying pressure in the market is constant and strong enough.

GBPUSD
Dominant bias: Bearish
The Cable was in an equilibrium phase for a few weeks before the current breakout to the downside came into effect. It was normally expected that the price would relentlessly pursue the direction it took when it finally broke out. When the Cable broke out of the equilibrium phase, it was towards the south. Since then, the price has plummeted by over 150 pips. The bearish pressure is currently strong and the price may end up testing the accumulation territory at 1.6400.

USDJPY
Dominant bias: Bearish
The condition on the USD/JPY brought about a bogus bullish signal some days ago. Later the strength of the JPY pair has proven too much for the pair to maintain its bullish stance, thus making it difficult for the market to continue going further upwards. That rally has even proven to be an excellent bearish signal. Should the market close below the price level at 102.00, it would be easier for it to accelerate towards the demand level at 101.50.

EURJPY
Dominant bias: Bearish  
On March 17, 2014, there was a bullish attempt in the context of a downtrend. It simply turned out that the bullish attempt was an opportunity to sell short: from a weekly high of 141.96, the price on the cross has dropped to test the demand zone at 140.50, which could eventually be breached to the downside, as the price goes further bearish.

This forecast is concluded with the quote below:
                               
“It’s always about the long-term chance of making money by trading – not every day and not even every week either but every year.” – Bill Hubard


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



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