Friday, November 14, 2014

Weekly Trading Forecasts on Major Pairs (November 17 - 21, 2014)

Here’s the market outlook for the week:

Dominant bias: Bearish
The outlook on this pair remains bearish, but it is now in a precarious condition. There was a significant bullish effort on Friday, and the bearish outlook may be put in a serious jeopardy when the price manages to go above the resistance line at 1.2600. As long as the price is below that resistance line, the bearish outlook may be valid. However, when the price breaches that resistance line to the upside, it could be the beginning of a medium-term bullish trend, which may hold out till early December 2014.   

Dominant bias: Bullish   
This currency trading instrument is also bullish – though that bullish outlook is now seriously threatened. The market traded largely sideways within the last several trading days and later broke out in favor of the bears. While some may think of buying low, any movement below the support level at 0.9550 would mean that it is no longer sensible to seek long trades. This would happen especially in the face of the increasing stamina in the CHF.  

Dominant bias: Bearish  
This is a weak market. The GBP is now weak against most majors. The market dropped seriously this week, testing the accumulation territory at 1.5600, before the existing shallow upward bounce. With further weakness in the GBP, that accumulation territory may be tested again: it may even be breached to the downside. On the other hand, the Cable may also try to go into the normal positive correlation with its EURUSD counterpart, and in that case, a moderate transitory rally may be seen.

Dominant bias: Bullish  
The USDJPY remains bullish as a result of the marked weakness in the Yen. This is evident on most other JPY pairs, and this uptrend may continue for the rest of this month. The best thing to do now is to look for buying opportunities when things go temporarily on sale in the context of the extant uptrend.      

Dominant bias: Bullish
This cross was able to trend further higher recently; a bias which is expected to continue. Since last month, the cross has trended upwards by more than 1000 pips, for the Bullish Confirmation Pattern in the market is getting stronger and stronger.  While the demand zone at 144.00 ought to be watched, the supply zone at 147.00 is a now potential target for the bulls.

This forecast is concluded with the quote below:

“Forex trading capitalizes on smooth, clean and consistent trends while mitigating risks. Currency price charts have many advantages in areas where you find drawbacks with stocks.” – Dr. Van K. Tharp

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