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Saturday, September 26, 2015

Weekly Trading Forecasts on Major Pairs (September 28 – October 2, 2015)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish  
This pair fell 200 pips last week, almost touching the support line at 1.1100. Afterwards, price bounced upwards by 180 pips and then got corrected lower. The price action in the market reveals that bulls are still making noticeable effort to push the price upwards, all in the context of a downtrend. This week, serious volatility would be witnessed as bulls continue to make more bullish effort, which would not jeopardize the extant bearish bias until the resistance line at 1.1300 is overcome.

USDCHF
Dominant bias: Bullish
USDCHF moved upwards in a directionally mode last week, breaking above the resistance level at 0.9800, but closing below it at the end of the week. The short-selling that occurred on September 24, 2015 simply provided an opportunity to go long at better prices. Unless EURUSD experiences a significant bullish movement, USDCHF cannot plunge significantly. So whatever would happen to USDCHF this week would be determined by the movement of EURUSD.  

GBPUSD
Dominant bias: Bearish    
Last week, this pair dropped almost 400 pips, testing the accumulation territory at 1.5150. Last week, it was mentioned that the pair would have difficulty going upwards: That statement is also valid for this week. Any rallies that happen on this pair would be good opportunities to sell short at better prices. Another southwards movement of at least, 200 pips, is expected this week. So that accumulation territories at 1.5100 and 1.5000 are potential targets.

USDJPY
Dominant bias: Neutral    
There is not yet any directional movement on this currency trading instrument and it would be nice for swing and position traders to stay away from it until there is a strong breakout. However, this instrument is currently great for scalpers and intraday traders. Before a breakout can be termed as being strong here, there must be a bearish or a bullish movement of at least, 300 pips.  Most of the month of September 2015 has been trendless.
                                                                                                                               
EURJPY
Dominant bias: Bearish
EURJPY cross first moved downwards 200 pips, and then started going upwards gradually on September 23. There is still a Bearish Confirmation Pattern in the market, which cannot be violated as long as the cross is unable to go above the supply zone at 136.00. Once that supply zone is overcome, then things would be bullish; but until that is done, this is a bear market. Any rally that is seen could thus be deceptive.    

This forecast is concluded with the quote below:


“I do not trade for sport or hobby. I trade for a living. So it is important for me to quantify trading opportunities and determine that I do in fact have an edge before I enter a position.” – Rob Hanna

                                                                                                  


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

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