Weekly Trading Forecasts for Major Pairs (November 23 - 27, 2015)

Here’s the market outlook for this week:

EURUSD
Dominant bias: Bearish
EURUSD made no strong directional movements last week and closed down on Friday (at 1.0645), highlighting the ongoing weakness in this pair. There is now the possibility of the support lines at 1.0600 and 1.0550 being tested; but a strong bullish attempt could also push price towards the resistance levels at 0.0700 and 0.0750 from here.

USDCHF
Dominant bias: Bullish
This pair moved upwards 150 pips and reached the resistance level at 1.0200, which was our suggested target for last week. Nonetheless, price was unable to break that resistance level, so this week will see if that feat can be achieved. If that resistance level is overcome then price could move upwards another 150 pips, but failure could result in a bearish correction (though a break below the great support level at 1.0000 seems unlikely now).

GBPUSD
Dominant bias: Bearish
In the context of a downtrend, Cable made a noteworthy bullish attempt - even temporarily going above the distribution territory at 1.5300, but this upwards move proved to be a bogus “buy” signal because bears came in on Friday and pushed price back down to where it started the week. Further downward movement is probable, and the bearish bias will hold out until price is able to stay above the distribution territory at 1.5300.

USDJPY
Dominant bias: Bullish
This market consolidated throughout last week, though there was no price action to suggest an end to the current bullish bias. If the consolidation continues this week then the bias will turn neutral. One thing to note: some pairs and exotic crosses have begun trending strongly, and this could extend to include USDJPY.

EURJPY
Dominant bias: Bearish
This pair went further south last week - closing below the supply zone at 131.00 - in conjunction with the ongoing weakness in the market. The decline last week was not a serious thing, but could continue. However, hope of bullish JPY pairs is still in the air this month and, if the Yen loses strength, then EURJPY could easily trend upwards.

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

“Brilliant traders are being made today, and if you shelter without taking action, your next few years could be wasted. Leaps in skill development occur when tests are presented. Smooth sailing doesn’t prepare the sailor. It is challenges that focus the mind like no other.” - Louise Bedford

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