Weekly Trading Forecasts for Major Pairs (March 14 - 18, 2016)
14 March 2016, 19:33
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Here’s the market outlook for this week:: Content courtesy of Tallinex Limited https://www.tallinex.com
EURUSD
Dominant bias: BullishPrice consolidated from Monday to Wednesday, before breaking upward on Thursday after first spiking downwards. The rally was significant - testing the resistance line at 1.1200. There is a Bullish Confirmation Pattern in the market, so price may continue upward this week - targeting the resistance line at 1.1200, and possibly testing the resistance lines at 1.1250 and 1.1300.
USDCHF
Dominant bias: Bearish
This market was consolidating between the support level at 0.9900 and the resistance level at 1.0000. There was a false breakout above the resistance level at 1.0000 on Thursday, then a strong move downwards. This has led to a “sell” signal which might continue this week. USD will be facing challenges from various major pairs like EUR and GBP. Even NZD will rally this week as it will be strong versus other currencies, which means USD is in for a serious battering.
GBPUSD
Dominant bias: Bullish
As anticipated, price rallied last week - testing the distribution territory at 1.4400 and closing at 1.4383 on Friday. The trend is expected to continue this week as price targets the distribution territories at 1.4450 and 1.4500 - possibly even beyond, but not without attacks from bears, who will show desperation to drag price south.
USDJPY
Dominant bias: Neutral
Price entered a turbulent phase from March 7 - 11, with no clear winner between bulls and bears. Price moved downwards on Monday and Tuesday, upwards on Wednesday, and Thursday was full of bearish threats. On Friday, bulls called bears out and managed to push price upwards slightly. What will happen next? Current price action suggests continued upward movement, but persistent USD weakness could limit the anticipated bullish movement.
EURJPY
Dominant bias: Bullish
Monday saw consolidation, a move downward on Tuesday, and the beginnings of a rally on Wednesday. In fact, that rally took price upwards over 400 pips - testing the supply zone at 127.00. Bulls are still showing willingness to push price upward, and there is a bullish signal in the market. The potential targets for this week are 127.50 and 128.00.
I’d like to conclude this forecast with the following quote:
“Effective traders are willing to get out of their comfort zones and try new things. I know it might be scary to go into the unknown, but to have more in life, you must take smart risks.” - Louise Bedford
Azeez Mustapha
Currency Analyst
Tallinex Limited
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