Weekly Trading Forecasts on Major Pairs (October 27 - 31, 2014)

Here’s the market outlook for the week:

EURUSD

Dominant bias: Bearish

This is a weak market, and the current shallow rally is another opportunity to go short. This week, there is a possibility that the price would go south, reaching the support lines at 1.2600 and 1.2550 respectively. The resistance lines at 1.2750 and 1.2800 ought to serve as hindrances to the bulls’ interests, for the bulls may want to push the price upwards.  

USDCHF

Dominant bias: Bullish   

The USDCHF has some strength in it, as opposed to the EURUSD, and the current negligible bearish retracement may give the bulls a good chance to enter the market at a better price. This week, there is a possibility that the price would go north, reaching the resistance levels at 0.9600 and 0.9650 successively. The support levels at 0.9450 and 0.9400 should act as formidable barriers to the bears’ interests, for the bears may want to push the price downwards.

GBPUSD

Dominant bias: Neutral   

There is no clear directional bias on the Cable, especially as far as the recent price action is concerned. It is not unusual for the price to trend upwards, only to trend downwards again (all in the near term). Looking at the price action more closely, it would be noticed that the bulls are making some sincere effort to gain upper hands; hence the current consolidation to the upside. It is more likely that when a breakout does occur in the market, it would be to the upside. Should this prove to be correct, the price may reach the distribution territories at 1.6150 and 1.6200.

USDJPY

Dominant bias: Bullish  

This currency trading instrument has been going upwards in a slow and steady manner.  The price is currently above the demand level at 108.00, and a break above the demand level at 108.50 would result in a very strong Bullish Confirmation Pattern in the market. Given what is happening in this market, short trades are presently not advisable. There is a demand level at 107.00.   

EURJPY

Dominant bias: Bullish

The Euro itself is not strong, but here, the Yen is weaker than it. This reality has reflected in the bullish effort on this cross. Since testing the demand zone at 135.50, the price has gone upwards by around 150 pips. The supply zone at 137.00 is now under siege – almost giving way as it is being battered by buying pressure. As it is expected of most JPY pairs, the cross may go further upwards this week, reaching the supply zones at 137.50 and 138.00.  

This forecast is concluded with the quote below:

“I enjoy talking about trading and would like to convince people that you can learn to trade just as you can train for any other profession and that there's nothing "evil" about it.” - Ruediger Born

Source: www.tallinex.com

 Learn from the Generals of the Markets: http://www.amazon.co.uk/Learn-Generals-Market-Azeez-Mustapha/dp/1908756314