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Saturday, October 8, 2016

Weekly Trading Forecasts on Major Pairs (October 10 - 14, 2016)

Here’s the market outlook for the week:
                                          
EURUSD
Dominant bias: Neutral  
This pair remains neutral in spite of strong volatility witnessed on other pairs and crosses last week.  Price simply went below the support line at 1.1150 and then moved towards the resistance line at 1.1200, closing at 1.1200. The neutral bias would persist for some time, but a strong momentum is expected soon. Price needs to go above the resistance line at 1.1350, or below the support line at 1.1050, before it could be said that the neutral bias is over. This week, the most probable direction for EURUSD and some other few EUR pairs, is downwards.     



USDCHF
Dominant bias: Bullish
This currency trading instrument is neutral in the long term, but bullish in the short-term. Price went upward on Monday and Tuesday, nosedived on Wednesday, and went upwards again on Thursday and got corrected again on Friday.  While it is possible for this instrument to go further upwards, the movement would be limited, because it is unlikely that price would be able to go above the resistance level at 0.9900.

GBPUSD
Dominant bias: Bearish
There is a strong Bearish Confirmation Pattern on GBPUSD market, and most other GBP pairs. As it was predicted last week, price dropped sharply by 880 pips, reaching a low of 1.2031. This is a persistent bearish trend. After that, price bounced back by 420 pips, to close at 1.2421. What next? Well, the forecast for this week is that, GBPUSD would be bullish (which is also true of a few other GBP pairs). Price would go visibly upwards this week, but that would not be significant enough to override the currently long-term bearish outlook on the market.

USDJPY
Dominant bias: Bullish
As it was anticipated, USDJPY broke upwards last week, ending the recent equilibrium phase in the market. Price shot skywards by 280 pips, testing the supply level at 104.00 and the getting corrected by 100 pips. Price closed below the supply level at 103.00 on Friday, and that could be a good opportunity to seek long trades when things are on sale, and in the context of an uptrend. The outlook on JPY pairs remain bullish for this week, so price could go upwards again by at last, 150 pips this week.
                                                                                                                               
EURJPY
Dominant bias: Bullish   
Just like USDJPY, EURJPY went upwards seriously last week, testing the supply zone at 116.00 pips, before getting corrected by 90 pips. There is a Bullish Confirmation Pattern on the market, and further upwards movement could happen this week, thereby ending the current bearish correction. From the current locating, price may go towards the supply zones at 115.50, 116.00, and 116.50.

This forecast is concluded with the quote below:

“I learned that the market truly is your greatest teacher and that trading is a skill you must nurture and develop. The more time you spend in the market, the better you are able to understand market movements.” - Michael Patak


  

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