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Monday, January 14, 2013

Weekly Trading Update (January 14 – 18, 2013)

EURUSD
Primary trend: Bullish
The pair moved up by more than 300 pips last week (January 7 – 11, 2013). All technical indicators that are put on this chart shows bullish confirmation pattern. The bullish scenario is expected to continue this week. Though there could be some pullbacks in the near-term, the next price target would easily be the resistance line at 1.3400 and then the resistance line at 1.3450.

USDCHF
Primary trend: Bearish
The USDCHF pair plummeted seriously last week; by close to 160 pips. All the technical indicators that are put on the USDCFH chart testify to a bearish confirmation pattern. It is still expected that the bearish plunge will continue, given the weakness in the USD. The next price level that would be reached this week is at the support level at 0.9100, and then the support level at 0.9000.


GBPUSD
Primary trend: Bullish
Unlike the Euro, the Cable is not that strong versus the Greenback. Some bleak economic outlook might be responsible for this. Overall, the Cable was bullish last week, but not significantly. With some luck, perhaps the Cable could rise up a little bit more, especially if the Euro is also bullish this week. Otherwise, the Cable would trade sideways and oscillate between the distribution territory at 1.6200 and accumulation territory at 1.6100.

USDJPY
Primary trend: Bullish
Far beyond expectations, the USDJPY continues to break one supply level after the other – to the upside. Well, there is no end in sight for this outlook. Because, all technical indicators that are put on the 4-hour chart will ultimately support the northward outlook. Should this outlook hold out long enough, the market might reach the supply zone at 90.00 this week, and then another supply zone at 90.50.   


EURJPY
Primary trend: Bullish
The EURJPY, like most other JPY pairs, was also involved in some noteworthy northward outlook. The cross seems determined to go on being bullish, so the ultimate target for this week is at the supply zone around 119.50, and then the supply zone at 120.00. Since the cross moved up by more than 450 pips last week, this target is not far-fetched.

Conclusion: The world of speculation would go on being monitored, but it does not mean that the uncertainties of the future or downtrends would be removed. Sudden price moves occur in the trading world because of greed and fear – a phenomenon that is no longer new, as market players cause the markets to move as they call new trades and use modern electronic trading devices and core speculative strategies. Mostly, many traders, institutional and private, may not be able to move the markets always. Your mind ought to be made up even prior to risking your portfolio. Moreover, market players affirm that transactions would expose some part of their portfolios. If a day speculator stops their activities, even investors may not get the prices they want, and this would cause many adverse chain reaction, including unavailability of trends.  

This article is concluded with the quote below:

“Overall, traders should make an effort to win the largest possible amounts in
their profitable trades and only have small losing trades.” – Marc Rivalland


Azeez Mustapha


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