Weekly Trading Forecasts for Major Pairs (June 1 - 5, 2015)

Here’s the market outlook for this week:

EURUSD
Dominant bias: Bearish
EURUSD dropped below the support line at 1.0850 last week, but could not remain there - rallying over 150 pips to test the resistance line at 1.1000. However, the overall bias is still bearish, and will remain so unless price breaches the resistance lines at 1.1100 and 1.1200 - a difficult feat for bulls to achieve as the current bearish outlook may well last longer than anticipated. Unless the aforementioned resistance lines are breached, any bounces (like the current one) should be taken as short-selling opportunities.

USDCHF
Dominant bias: Bullish
This pair initially went up last week - moving above the resistance level at 0.9500. However, as mentioned in the May 25 - 29 forecasts, CHF gained considerable energy which halted further upwards movement and is partly responsible for the visible bearish correction in this market. The strength in CHF can also be seen in other CHF pairs (such as GBPCHF, CHFJPY, NZDCHF etc.). Although bulls forfeited the gains they made last week, the overall outlook will remain bullish until the support level at 0.9300 is breached, and the likelihood of this is quite high - especially if CHF maintains its current strength.

GBPUSD
Dominant bias: Bearish
This is a weak market. Price dropped 200 pips last week and it is currently illogical to seek long positions until price action justifies it. It is possible for Cable to rally during June but, until then, the bias is bearish.

USDJPY
Dominant bias: Bullish
This pair has moved upwards by 450 pips since May 18, which has caused a clean Bullish Confirmation Pattern in the market. Additional upward movement is possible, largely because the Yen continues to be weak. On Friday, May 29, price closed above the demand level at 124.00 so the possible targets for this week are the supply levels at 124.50 and 125.50.

EURJPY
Dominant bias: Bullish
This interesting cross has pushed north - moving up from near the 133.00 demand zone to approach the supply zone at 136.50. More upward movement is expected this week – potentially allowing bulls to gain another 200 pips. Generally, the outlook on JPY pairs is bullish for June, though a few exceptions are possible.

I’d like to conclude this forecast with the following quote:

“There are abundant opportunities to make a profit in the markets, but you need to work hard and diligently to find them. It can be done. There are many traders who make profits day after day. The decision you have to make, however, is whether you want to sit on the sidelines and say, "It couldn't be done", or jump in, resolute and confident, and work tirelessly until you achieve enduring financial success.” - Joe Ross

  HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.