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Sunday, August 16, 2015

Weekly Trading Forecasts on Major Pairs (August 17 - 21, 2015)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bullish
This pair rose by 150 pips last week, rising from the support line at 1.0950 and reaching the resistance line at 1.1200. Price has really met a challenge at the resistance line at 1.1200, but it would need to go above the resistance line so that the bullish journey can continue. There are support lines at 1.1050 and 1.1000: the bullish outlook would make sense as long as the support lines are not breached to the downside.   

USDCHF
Dominant bias: Bullish   
In recent times, both USDCHF and EURUSD are making bullish efforts. This is unusual because the pairs ought to go in separate ways (and they would soon do so). After testing the resistance level at 0.9900, USDCHF got corrected by 200 pips, testing the support level at 0.9700. However, this does not render the recent bullish bias invalid. The pair is now making some effort to go upwards and this week would see the result of that effort. The recent bullish bias could only be rendered useless in case the support level 0.9650 is breached to the downside.   

GBPUSD
Dominant bias: Neutral  
Cable remains highly volatile; characterized by large upswings and downswings in the market. There is no clear directional bias on the market because bulls and bears enjoy only transitory victories. There is an accumulation territory at 1.5450 and there is a distribution territory at 1.5650, which is an adamant distribution territory indeed because it has rejected all bullish effort for the past several weeks. Since the expectation for GBP is bearish for this month, things would become really bearish when the accumulation territory at 1.5450 is broken to the downside. On the other hand, a break above the distribution territory at 1.5650 would mean the bearish expectation may not materialize this month.     

USDJPY
Dominant bias: Neutral   
Based on the current price action, it can be said that USDJPY has hitherto defied gravity. Occasional bearish corrections are quickly followed by rally attempts – and all these are not even significant. This week, it would be intriguing to watch what would happen to this currency trading instrument. A movement below the demand level at 123.50 would result in a ‘sell’ signal while a movement above the supply level at 125.50 would result in a Bullish Confirmation Pattern.     
                                                                                                                               
EURJPY
Dominant bias: Bullish  
This cross rallied massively last week, closing at 138.11 on Friday, August 14, 2015 (just above the demand zone at 138.00). While the cross may journey further northwards this week, that would not rule out the possibility of a bearish plunge. The cross would be going upwards only as long as EUR is stronger than JPY.  

This forecast is concluded with the quote below:

“After playing in front of large football crowds and having the spotlight on me, I really enjoy having my own destiny in my hands now. I miss being as physically fit as I used to be, and the fun times with the other players, but I also like the freedom of trading. As a professional sportsman you have no freedom. But in my second career I have all the freedom I need, and that is through trading.” – Lee Stanford
                                                                                                  


What Super Traders Don’t Want You To Know: http://www.advfnbooks.com/books/supertraders/index.html


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