Weekly Trading Forecasts for Major Pairs (May 15 - May 19, 2017)
14 May 2017, 19:08
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Here’s the market outlook for this week: Content courtesy of Tallinex Limited https://www.tallinex.com
EURUSDDominant bias: Bullish
Last week saw price test the support line at 1.0850 before closing above the support line at 1.0900 on Friday, which left the outlook bullish in the medium-term, but neutral in the short-term. Movement above the resistance line at 1.1000 will strengthen the existing bullish bias, but movement below the support line 1.0700 will threaten it. Pullbacks are possible this week, but a bearish bias will not develop until the support line at 1.0700 is breached.
USDCHF
Dominant bias: Neutral
There was a climb of 230 pips last week which tested the resistance level at 1.0100 before pulling back towards the support level at 1.0000. The short-term bearish signal was overridden by the move up experienced early last week, but further bullish effort has been hindered by the pullback on Friday so a protracted move is needed to form a directional bias.
GBPUSD
Dominant bias: Bullish
Although price consolidated throughout last week, a bullish outlook remains, but further consolidation will result in a neutral outlook. The accumulation territory at 1.2850 was tested last week and, as current price action shows noticeable weakness in the bullish trend, there is an increased chance of large pullbacks - especially once the accumulation territories at 1.2850 and 1.2800 are breached.
USDJPY
Dominant bias: Bullish
Price moved up last week and briefly breached the demand level at 114.00 before corrected by 80 pips on Thursday and Friday. The bias remains bullish while price stays above the demand level at 112.00. The supply levels at 113.50, 114.00 and 114.50 may be targeted this week.
EURJPY
Dominant bias: Bullish
Consolidation occurred last week in the context of an uptrend as price remained between the demand zone at 123.00 and the supply zone at 124.50. A rise in momentum is anticipated this week that should emphasize the current Bullish Confirmation Pattern - especially when the supply zone at 125.00 is overcome. The bullish bias will be jeopardized if price falls below the demand zone at 122.00.
This forecast is concluded with the quote below:
“I’ve always believed that on every trader's journey, emotions are nice companions but lousy guides…This phrase is meant to remind us that life would be pretty darned boring if we never experienced any emotions. But more importantly in trading, decisions made when we are in a non-productive emotional state will likely produce results we don’t like. That’s where a great trading system comes to the rescue. It gives us a framework to calmly and coolly evaluate situations and make the right moves…” - D.R. Barton, Jr.
Azeez Mustapha
Currency Analyst
Tallinex Limited
The Jaycees Building, Stoney Ground
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