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Saturday, July 25, 2015

Weekly Trading Forecasts on Major Pairs (July 27 - 31, 2015)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish
Although the dominant bias is bearish, this pair made some commendable bullish attempts last week. Price moved upwards by almost 200 pips, testing the resistance line at 1.1000. That resistance line is an important price area, since it must be broken to the upside for the current bullish effort to continue. Should that occur, a subsequent break of the resistance lines at 1.1050 and 1.1100 would result in a clean bullish bias. On the other hand, any failure of price to break the resistance line at 1.1000 to the upside could result in a serious bearish movement.

USDCHF
Dominant bias: Bullish   
Last week, USDCHF was able to maintain its bullish stance in spite of the fact that EURUSD was also making bullish effort. This is one of rare occasions in which EURUSD and USDCHF would be going in the same direction in the short-term. However, things will soon go out of balance and the pairs would go their separate ways. USDCHF might go further upwards, but this would be challenged by the resistance levels at 0.9650 and 0.9700. In fact, it is highly probable that CHF may gain serious stamina before the end of this month (this would also affect other CHF pairs), and thus cause USDCHF to fall smoothly.  

GBPUSD
Dominant bias: Bearish  
This mercurial currency trading instrument experienced a southwards movement last week.  There is a bearish signal in the market: which would be valid as long as the distribution territories at 1.5650 and 1.5700 are not breached to the upside. In case those distribution territories are overcome, the current bearish signal would be rendered illogical.

USDJPY
Dominant bias: Bullish   
This market traded sideways last week, though the bullish trend on it is not yet over. Should the market move sideways again throughout this week, it would enter a neutral territory. Nevertheless, price could soon go out of balance, resulting in a serious trending move. Yen can become very strong before the end of this month – causing other JPY pairs to tumble – and it can also cause USDJPY to go bearish.  
                                                                                                                               
EURJPY
Dominant bias: Bullish  
From the demand zone at 134.50, this cross moved upwards by over 150 pips, slamming into the supply zone at 136.00. This has caused a Bullish Confirmation Pattern in the market, but it is a confirmation pattern that might be short-lived, since Yen can become very strong before the end of the month, causing bears to dominant the market.  

This forecast is concluded with the quote below:

“… No system or set of trades is either winning or losing, they are only so with respect to the position sizing (or money management) that was applied… We have every tool we can long for to control risk while adding to our winners.” - Dirk Vandycke
                                                                                                  

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






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