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Friday, April 11, 2014

Weekly Trading Forecasts on Major Pairs (April 14 - 18, 2014)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bullish
This pair rejected the recent southward pull on it, trended upwards and resulted in a confirmed bullish bias. From the support line at 1.3700, this market has moved upwards and it could test the resistance line at 1.3950. Testing the resistance line at 1.4000 also is not an impossibility, for the trend has a probability of continuation rather than that of a reversal. Along the way there could be some pullbacks before the pair reaches the aforementioned targets.

USDCHF
Dominant bias: Bearish
The USD/CHF has been weak so far – that is the latest development in the market. The strength in the EUR/USD is pushing the USDCHF downwards, for they must go into negative correlation with each other, especially when there are significant moves in the markets. As long as the EUR/USD is strong, the USD/CHF pair will continue its weakness; it could reach the support level at 0.8700.

GBPUSD
Dominant bias: Bullish
The significant rally in this currency trading instrument has resulted in a Bullish Confirmation Pattern in the chart. The distribution territory at 1.6800 has been challenged before the price was corrected a little. The price could go upwards again to challenge that distribution territory. It may slash through it, close above it and go further upwards towards other distribution territories at 1.6850 and 1.6950.

USDJPY
Dominant bias: Bearish
It was expected that the last bullish run on this currency trading instrument would hold out till around April 10, though those who went against the Yen would have realized some gains in the latter part of March 2014. The present conspicuous weakness in the USD has resulted in an established bearish outlook. It would, therefore, make sense to seek short trades here. The market level at 101.50 has been besieged, and with an increase in the selling pressure, the market level would be violated as the prices reaches out for the market level at 101.00.

EURJPY
Dominant bias: Bearish
The bias on this cross is bearish, but the trend itself has been limited in force because of the perceived strength in the EUR. The price is very volatile; plus the struggle between the bears and the bulls is intense. However, the current price action shows that there are greater odds on the side of the bears. We may want to put our target at the demand zone of 140.00. 

This forecast is concluded with the quote below:

“The biggest mistake you can make is changing your trading style based on your previous trade or series of trades.” - Peter Brandt


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



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