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Saturday, June 4, 2016

Weekly Trading Forecasts on Major Pairs (June 6 - 10, 2016)

Here’s the market outlook for the week:
                                          
EURUSD
Dominant bias: Bullish
This pair moved sideways from Monday to Friday, in the context of a downtrend. The downtrend was forcefully overturned as the pair shot skywards by 220 pips on Friday, closing at 1.1365 on the same day. The bias has turned bullish, but there is a great challenge for bulls this week. While the pair could go further north, there would be a serious bearish correction when USD gains stamina versus EUR. The outlook on EUR is bearish for this month. EUR could be become weak versus other currencies – and USD is no exception.

USDCHF
Dominant bias: Bearish  
USDCHF tested the resistance level at 0.9950 several times last week, but it could not stay above it (let alone reaching the resistance level at 1.0000, which is a parity area). Price consolidated till Friday and then broke downwards, almost reaching the support level at 0.9750. This significant bearish breakout has resulted in a Bearish Confirmation Pattern in the market, and price could reach the support levels at 0.9700 and 0.9650, as long as bears gain upper hands here. Should EURUSD loses its strength, USDCHF would experience some buying pressure.      

GBPUSD
Dominant bias: Bearish  
GBPUSD first attempted to go up last week, tested the distribution territory at 1.4700, and then moved south 300 pips, reaching the accumulation territory at 1.4400, before price made a rally effort on Friday, June 3. Most pairs and crosses would experience low volatility in June, save GBP pairs and NZD pairs (for NZD also would become strong versus other currencies in June). Yes, GBP pairs would experience high volatility this month; which would be a series of bearish and bullish movements. This week, some buying pressure might be witnessed on GBPUSD, for the accumulation territory at 1.4400 has checked repeated bearish attacks.

USDJPY
Dominant bias: Bearish
This currency trading instrument went sideways on Monday and Tuesday, and began to drop like a stone from Tuesday. The bearish movement on Friday was the strongest, bringing the market to at least, 420 pips towards the south last week. Although this bearish trend could reverse this week, it is possible for price to reach the demand levels 106.00 and 105.50 before the potential reversal.          
                                                                                                                               
EURJPY
Dominant bias: Bearish
This cross made some effort to go upwards last week, but this effort was rendered futile after price reached the supply zone at 124.00. Since price could not break above that supply zone, a clean decline was witnessed as price came down, closing below the supply zone at 121.50. Just like USDJPY, it is possible for price to reach the demand zones at 120.50 and 120.00; even if there would be a bullish reversal after that.

This forecast is concluded with the quote below:

“My world is trading and markets. This is where I am very comfortable and extremely confident…” – Sam Seiden


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

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