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Friday, November 21, 2014

Weekly Trading Forecasts on Major Pairs (November 24 - 28, 2014)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish
The hope of the EURUSD going seriously bullish in this month has been dashed.  The price broke down through one support line and another, as the forlorn bull becomes listless. The price has closed below the resistance line at 1.2400, and it may soon test the support line at 1.2350. With further weakness in the market, the support line at 1.2300 may also be tested.  The only thing that can change the situation is the weakness in the Greenback.

USDCHF
Dominant bias: Bullish   
This pair has been able to shrug off the bearish pulls there were trying to weigh it down. The bearish effort has been nullified and the strength in the market may continue into December 2014. The price has now closed above the support level at 0.9650, threatening the resistance level at 0.9700. That resistance level is now almost yielding and the next target for the bull would be the resistance level at 0.9750.

GBPUSD
Dominant bias: Bearish  
This is still a weak market – with no strong directional movement to the upside or to the downside last within the last several trading days. The accumulation territory at 1.5600 was tested last week and this week: it could be tested again. However, it is unlikely that the accumulation territory would be breached to the downside, and as a result of this, the price might make an attempt to rally anytime.  

USDJPY
Dominant bias: Bullish  
This currency trading instrument is very strong, with a Bullish Confirmation Pattern in the market. Most JPY pairs have the potential to remain strong till the end of this month, so it would be OK to look to buy on dips. The current shallow sale should be seen as another opportunity to go long at a better price. There is a supply level at 119.00, which could be reached and breached as the price resumes its northward journey.     

EURJPY
Dominant bias: Bullish
From the supply zone at 149.00, the EURJPY plummeted by roughly 300 pips, closing below the supply zone at 146.50. The short-term outlook is bearish, but the dominant bias remains bullish, unless the price breaks the demand zone at 144.50 to the downside. A break below that demand zone would mean the end of the bearish outlook on this cross; otherwise the price can still resume its upwards journey.  

This forecast is concluded with the quote below:

“Professional traders and institutional investors… use the odds offered by the markets to secure regular and, in particular, consistent incomes.” – Jens Rabe




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