Weekly Trading Forecasts on Major Pairs (May 26 - 30, 2014)

Here’s the market outlook for the week:

EURUSD

Dominant bias: Bearish

The dominant bias on the EUR/USD has been bearish for most part of this month. However, the adamant and obdurate support line at 1.3650 has been a major headache to the bears. As a result of this, the southward journey has been limited, e.g. the market has only moved down by 55 pips this week. The expectation is: the support line has to be broken to the downside so that the bearish journey can continue.  Should the support line get broken to the downside, the next price targets could be the support lines at 1.3600 and 1.3550.

USDCHF

Dominant bias: Bullish  

The dominant bias on the USD/CHF has been bullish for most part of this month. Nevertheless, the recalcitrant and obstinate resistance level at 0.8950 has been a major problem to the bulls. As a result of this, the northward journey has been limited, e.g. the market has only moved up by 42 pips this week. The expectation is: the resistance level has to be broken to the upside so that the bullish journey can continue.  Should the resistance level get broken to the upside, the next price targets could be resistance levels at 0.9000 and 0.9050.

GBPUSD

Dominant bias: Bullish  

From the accumulation territory at 1.6750, the price has moved upwards by over 150 pips. The price is currently challenging the distribution territory at 1.6900 – a vigorous challenge indeed! The Bullish Confirmation Pattern in the chart ensures that the current bearish retracement remains shallow and another opportunity to buy long during such retracement.

USDJPY

Dominant bias: Bearish

Although the overall bias on this pair is bearish, there is a serious challenge to the bias. The price has closed above the demand level at 101.50, but it needs to close below it so that the bearish bias might continue. In fact, the price also needs to breach the demand level at 101.00 to the downside and continue its journey further downwards. On the other hand, a movement above the supply level at 102.00 would mean a serious jeopardy to the bearish bias, especially when the price closes above it.

EURJPY

Dominant bias: Bearish

This currency trading instrument remains weak. One reason for this is the weakness in the EUR itself. The southward moved has been slow and tardy; and there is a need for the price to breach the demand zone at 138.50 to the downside so that the southward journey can continue.

This forecast is concluded with the quote below:

“It is possible to make it big in trading if one has a clear idea of direction, degree, and timing.  One must know when to buy, when to sell, and when to stay out of the market.” - Roy Longstreet 

Source: www.tallinex.com

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