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Saturday, June 18, 2016

Weekly Trading Forecasts on Major Pairs (June 20 - 24, 2016)

Here’s the market outlook for the week:
                                          
EURUSD
Dominant bias: Neutral
All bearish pulls EURUSD experienced last week were rendered useless by bullish effort. Price did not go above the resistance line at 1.1300 last week; nor did it stay below the support line at 1.1150. The impasse between bulls and bears has enforced the neutrality of the market, and unless price goes above the resistance line at 1.1400 (causing a bullish bias), or goes below the support line at 1.1100 (causing a bearish bias), the neutrality of price would continue. This week, there is going to be strong moment on EURUSD, which would most likely favor bears. This pair is quite choppy right now.

USDCHF
Dominant bias: Bearish  
This pair moved sideways last week – performing only upswings and downswings in the context of a downtrend. The support level at 0.9550 ought to be breached to the downside for the bearish journey to continue. However, further decline on EURUSD would trigger a rally on the pair, which would result in a Bullish Confirmation Pattern when price goes above the resistance level at 0.9800. A strong buying pressure is required for this to happen.

GBPUSD
Dominant bias: Bearish  
This week, there would not be any unprecedented movements on GBP pairs (just like Grexit caused no special movements in the markets), save strong movements that are not more than anything that has been witnessed so far this year. Surprise movements do not usually happen when they are anticipated. What usually cause extremely serious movements in the markets are events that happen unexpectedly. Likely effects of Brexit have been anticipated, as well as likely effects of Bremain. Therefore, they would not cause any movements stronger than what we have seen on GBP pairs this year. Throughout Thursday, June 23, GBPUSD (and most other GBP pairs) will go in one direction with little or no reversal, but there would be nothing graver than normal. The outlook on the pair is bearish and further southward movement could possibly be witnessed this week.
 
USDJPY
Dominant bias: Bearish
Just as it was forecasted, USDJPY declined further by 300 pips last week, going below the demand level at 104.00, before things went sideways again. Price has dropped 550 pips since the beginning of this month, and the downtrend is likely to continue, as price targets the demand levels at 103.50 and 103.00.            
                                                                                                                               
EURJPY
Dominant bias: Bearish
This is a bear market, just like most other JPY pairs. There is a Bearish Confirmation Pattern in the market, giving a possibility of price reaching the demand zones at 117.00, 116.00, and 115.00 this week or next. The demand levels at 117.00 and 116.00 were tested last week, and they could be retested this week. One thing should be noted, bearish pressure on EUR would make it difficult for EURJPY to make any significant rally this week.  

This forecast is concluded with the quote below:

“You don't have to trade perfectly. You just have to trade profitably. Put a single trade in perspective. It's just one trade of the many trades you will make in your lifetime. You may lose or you may win, but the outcome of a single trade does not matter. What matters are your overall profits across a series of trades, not just a single trade.” – Joe Ross


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


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