Thursday, June 5, 2014

Weekly Trading Forecasts on Major Pairs (June 9 - 13, 2014)

Here’s the market outlook for the week:

Dominant bias: Bearish
This pair recently managed to test the support line at 1.3500 (or the price almost touched the support line). The movement of the price around the support line could not be sustained because the price bounced upwards seriously, reaching the resistance line at 1.6350. The price has succeeded in closing above the resistance line – something the poses a serious challenge to the bearish scenario. A close above the resistance line at 1.3700 would mean a successful challenge to the bearish scenario, which in turn would mean the start of a confirmed uptrend. On the other hand, should the price fail to close above the resistance line at 1.3700, it could be assumed that the bearish run would resume.

Dominant bias: Bullish  
The condition affecting this currency trading instrument is similar to that of the EURUSD, except in the opposite manner. The price tested the resistance level at 0.9000, but pulled back significantly. Yes, the pullback is significant enough to pose a threat to the recent bullish outlook; plus a close below the support level at 0.8900 would render the bullish outlook completely useless.

Dominant bias: Bullish   
The bullish attempt in this market is noteworthy enough to make long trades sensible in the market. When this forecast was being prepared, the price was trading above the accumulation territory at 1.6800. The price could reach the distribution territories at 1.6850 and 1.6900 within the next several trading days. In fact, this could be faster than imagine when the Greenback suddenly gets weakened further.

Dominant bias: Bullish
Although the price is currently experiencing some bullish retracement, it is still safe to assume that the bullish bias in the market is valid. The bullish bias can only be rendered useless when the price drops below the demand level at 102.00 and the demand level at 101.50. A movement above the supply level at 103.00 (even a test of it) would result in a renewed confirmation of the bullish bias.

Dominant bias: Bullish
There is a clean Bullish Confirmation Pattern on the cross, which would even be more formidable when the price closes above the supply zone 140.00: an easy target. The medium-term target for the next week is at the supply zone of 141.00.  

This forecast is concluded with the quote below:

“I suggest long-term traders make it a daily, or even weekly, habit to check on their trades. That way, you can stay on top of things without worrying about the false idol of overnight results.” – Joe Ross

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