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Saturday, May 21, 2016

Weekly Trading Forecasts on Major Pairs (May 23 - 27, 2016)

Here’s the market outlook for the week:
                                          
EURUSD
Dominant bias: Bearish
EURUSD went downwards last week, closing below the resistance line at 1.1250. There is a bearish bias on the market, and the support lines at 1.1150 and 1.1100 could be tested. The only thing that can make this happen is continuous stamina in USD as compared to EUR; for the latter would try to gain some stamina this week, against other pairs (please watch EURCAD, EURCHF and EURJPY). Any show of vulnerability in USD might effect a rally in the market.  

USDCHF
Dominant bias: Bullish  
Based on the expectation last week, this pair was able to continue its northward journey. Price moved north roughly by 160 pips, closing slightly above the support level at 0.9900. There is one threat to the existing bullish outlook – the possibility of a rally in CHF. CHF might rally this week, which would affect CHF pairs, and as such, USDCHF would face some difficulties in journeying further upwards. For the pair to go upwards, USD must showcase more stamina that it has at the present.   

GBPUSD
Dominant bias: Neutral  
Last week, GBP gained strength versus other currencies as expected, and surprisingly against USD. GBPUSD went upwards by over 300 pips, reached the distribution territory at 1.4650, where the buying pressure was truncated. Further bullish movement would have resulted in a clean Bullish Confirmation Pattern in the market, but as bears performed a check on the bullish movement, price got corrected by 140 pips, thereby forcing the market back into a neutral territory. There would be mixed signals in the market this week, since GBP would be strong versus some currencies, while weak versus some currencies. In case of GBPUSD, further rally is possible.  

USDJPY
Dominant bias: Bullish  
This market went upward more than 170 pips last week, getting to the supply level at 110.50. There is a Bullish Confirmation Pattern in the market, and price might go further upwards this week, reaching the supply levels at 111.00, 111.50, and 112.00. There are demand levels at 109.00 and 109.50, which should resist bears’ machinations. The bullish outlook would make sense as long as price does not go below those demand levels.         
                                                                                                                               
EURJPY
Dominant bias: Neutral
The EUR/JPY simply moved sideways last week, consolidating between the demand zone at 123.00 and the supply zone at 124.00. Possibility of a breakout is very strong this week, as price may assume a serious trending mode. However, when a breakout does occur, it could be in favor of bulls. Price might target the supply levels at 125.00 and 126.00; plus bullish effort would also be witnessed on certain other JPY pairs, like CHFJPY.

This forecast is concluded with the quote below:

“When a trader sees the market as it really is, rather than what they want to see, the act of trading becomes more relaxed and they become more confident and successful. Does this sound like the type of experience you want trading to be?” – Rebecca Price (Van Tharp Institute)



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


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