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Saturday, August 22, 2015

Weekly Trading Forecasts on Major Pairs (August 24 - 28, 2015)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bullish
From the support line at 1.1050, this pair went upward by 330 pips, going above the support line at 1.1350. EUR is now one of the strongest among the majors (and so is CHF) and this has reflected on most EUR pairs. The next targets for EURUSD are now at the resistance lines of 1.1400 and 1.1450, which could be breached easily with an ongoing bullish pressure in the market.  

USDCHF
Dominant bias: Bearish   
This is a bear market. The massive bearish breakout that was seen last week has resulted in an end to the recent sideways movement in the market. The weakness in USD and the strength in CHF, coupled with the fact that this pair has to trade in the opposite direction to the strong EURUSD, have contributed to the current tailspin. Price dived by 300 pips last week, and it is now close to the support level at 0.9450. With a continuation of the current situation, bears may be able to attain another support level at 0.9300 this week.  

GBPUSD
Dominant bias: Bullish   
GBP may be weak somewhere else (as seen on GBPCHF and GBPJPY), but it is not weak against USD. Last week, GBPUSD managed to go above the stubborn accumulation territory at 1.5650. Bulls tried to push the price further upwards, but bears came in against them and started their bearish efforts. Another serious fighting is taking place around an accumulation territory at 1.5700, but the bulls must eventually win for the current bullish outlook to continue being logical. The hope of a weak GBPUSD has been dashed for this month, because stubborn distribution territories, if breached, become stubborn accumulation territories (and the other way round).  After all, GBPUSD is positively correlated with EURUSD.    

USDJPY
Dominant bias: Bearish   
Following the recent equilibrium phase – which lasted for several weeks – USDJPY finally broke south in a predictable manner. A weak USDJPY has long been anticipated; and with the fact that bulls have failed to push price significantly northward, the current bearish plunge is no wonder. In a strong trending market like this, demand (and supply) levels would be easily cut through; just like a hot knife through butter. Further southward movement is anticipated this week, though bulls may make some faint effort to reverse the trend.       
                                                                                                                               
EURJPY
Dominant bias: Bullish  
The EURJPY cross initially went down by 100 pips last week, but the movement was later reversed and price went vividly upwards. The next point of attack is the supply zone at 139.00. Price is very close to that supply zone and it may be breached to the upside. The bullish bias will exist for as long as EUR is strong.    

This forecast is concluded with the quote below:

“If you are just starting out, you should trade with real money as soon as possible… Do not fool yourself into a false sense of reality. Get accustomed to trading for real because that is what you are going to have to do to make real money.” – Mark Minervini (a legendary trader)
                                                                                                  

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

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