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Saturday, October 17, 2015

Weekly Trading Forecasts on Major Pairs (October 19 - 23, 2015)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bullish   
This pair initially moved upwards last week, but it could not reach the resistance line at 1.1500 before it got corrected downwards. On Friday, price closed at 1.1348, though the bias is bullish. The bullish bias will remain valid as long as the support line at 1.1250 is not broken to the downside. Any bearish attempts that are seen here should be interpreted as an opportunity to go long, unless the aforementioned support line is broken to the downside.      

USDCHF
Dominant bias: Bearish
As long as EURUSD makes visible bullish effort, USDCHF would not perform any meaningful rally. Price went south last week, testing the support level at 0.9500 many times without being able to close below it. On Friday, price closed below the resistance level at 0.9550. There is a need to breach the support level at 0.9500 to the downside so that the bearish trend could continue. There are resistance levels at 0.9600 and 0.9650, which should try to defend the current bearish bias.   

GBPUSD
Dominant bias: Bullish    
This currency trading instrument went sideways on Monday. It went south on Tuesday, but rallied seriously on Wednesday in conformity to the existing bullish outlook. Price headed into the distribution territory at 1.5500; being unable to break above it. That distribution territory is now a challenge to bulls – they must overcome it so that the current bullish outlook could continue to make sense. The pair is supposed to continue moving upwards.      

USDJPY
Dominant bias: Neutral    
USDJPY experienced a bearish breakout last week, and price went down 200 pips as a result of that. This would have led to a Bearish Confirmation Pattern in the market, but the upwards bounce that happened after that has pushed back the price into the recent neutral territory. Price bounced upwards by 150 pips, just before the demand level at 118.00 could be tested. The condition for the end of the current neutral bias is this: Price must either close above the supply level at 121.00 or below the demand level at 118.00. That condition can still be fulfilled this month.   
                                                                                                                               
EURJPY
Dominant bias: Bullish
This cross moved sideways from Monday till Wednesday (October 12 - 14), and then performed a large pullback on Thursday, testing the demand zone at 135.00. Unless the demand zone at 134.50 is breached to the downside, EURJPY the uptrend would be rational. It is likely that EURJPY would go up this week or next week. Most JPY pairs could also go up before the end of the month.      

This forecast is concluded with the quote below:

“Your best bet is to think like a four-year-old. When prices go up, I am bullish, and when
they go down, I am bearish.” – Dennis Gartman
                                                                                                  


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



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