Weekly Trading Forecasts for Major Pairs (September 5 - 9, 2016)
4 September 2016, 20:43
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Here’s the market outlook for this week: Content courtesy of Tallinex Limited https://www.tallinex.com
EURUSD
Dominant bias: BearishThe bias turned bearish last week - closing at 1.1152 on Friday. Bulls made serious efforts to push price upwards on Thursday and Friday, but bears provided a stronger response and pulled price down again. There are support lines at 1.1100 and 1.1050 which may be tested this week, and the resistance lines at 1.1300 and 1.1350 should oppose any meaningful rallies. The bearish bias will remain until price goes above the resistance line at 1.1350.
USDCHF
Dominant bias: Bullish
The outlook became bullish last week - closing slightly above the support level at 0.9800 on September 2. Bears tried to push price downwards on Thursday and Friday, but bulls prevented any serious decline. There are resistance levels at 0.9850 and 0.9900 that may be tested this week while the support levels at 0.9750 and 0.9700 are expected to check any pullbacks. This bullish outlook will hold valid while price remains above the support level at 0.9700.
GBPUSD
Dominant bias: Bullish
Consolidation marked the first few days of the week, before an upward move on September 1 that was significant enough to create a Bullish Confirmation Pattern on the 4-hour chart. Further incline is possible, and may enable the distribution territories at 1.3400 and 1.3450 to be reached this week. We will continue witnessing high volatility on GBP pairs this month.
USDJPY
Dominant bias: Bullish
The bullish movement beginning on August 26 was maintained - price rose 400 pips, tried to stay above the supply level at 104.00, but closed below it on Friday. The outlook on JPY pairs has become strongly bullish, so price is expected to continue north until there is a significant change in the market.
EURJPY
Dominant bias: Bullish
As expected, the protracted equilibrium phase from August 8 to 26 has ended. Price rallied approximately 290 pips and is currently making efforts to settle above the supply zone at 116.00. Bulls must overcome that supply zone in order to extend the rally - something anticipated for this week. Since JPY is now weak, currencies gaining strength (like GBP) will enjoy massive gains versus the Yen.
I’d like to conclude this forecast with the following quote:
“The world’s most successful traders believe in themselves and their ability to win. In fact, many of them feel that they ‘own’ the market. They are not necessarily being arrogant, but they are sure of themselves and that they are able to take profits out of the market.” - Andy Jordan
Azeez Mustapha
Currency Analyst
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