Weekly Trading Forecasts for Major Pairs (October 10 - 14, 2016)
9 October 2016, 20:44
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Here’s the market outlook for this week: Content courtesy of Tallinex Limited https://www.tallinex.com
EURUSDDominant bias: Neutral
The bias remains neutral (despite strong volatility on other pairs last week) as price simply went below the support line at 1.1150 then moved up and closed at the 1.1200 resistance line. The neutral bias is likely to persist for some time, but strong momentum is expected soon. Price must break the resistance line at 1.1350 (or the support line at 1.1050) before the neutral bias can be considered over. This week, the most probable direction for EURUSD (and some other EUR pairs) is down.
USDCHF
Dominant bias: Bullish
The outlook is long-term neutral, but bullish in the short-term. Price went up on Monday and Tuesday, nose-dived on Wednesday, went up again on Thursday, and corrected again on Friday. While further gains are possible, upward movement would be limited because there is little chance of price getting above the resistance level at 0.9900.
GBPUSD
Dominant bias: Bearish
A strong Bearish Confirmation Pattern exists for this market - most other GBP pairs, too. As predicted last week, price dropped - spiking sharply almost 900 pips and booking a 30+ year low of around 1.1993 in the process, before recovering around 440 pips to close at 1.2429. What next? Well, the outlook for this week is bullish (which is also true of some other GBP pairs) so price should climb this week, but not significantly enough to override the long-term bearish outlook.
USDJPY
Dominant bias: Bullish
As anticipated, price broke upwards 280 pips last week - ending the recent equilibrium phase and testing the supply level at 104.00 before correcting by 100 pips. Price closed below the supply level at 103.00 on Friday, so that could be a good opportunity to seek long trades in the context of an uptrend. The outlook on JPY pairs remains bullish, so price could rise by an additional 150 pips this week.
EURJPY
Dominant bias: Bullish
Just like USDJPY, price climbed hard last week and tested the supply zone at 116.00 pips before correcting by 90 pips. There is a Bullish Confirmation Pattern in the market, so further gains may occur this week and end the current bearish correction. If so, likely targets are the supply zones at 115.50, 116.00, and 116.50.
I’d like to conclude this forecast with the following quote:
“I learned that the market truly is your greatest teacher and that trading is a skill you must nurture and develop. The more time you spend in the market, the better you are able to understand market movements.” - Michael Patak
Azeez Mustapha
Currency Analyst
Tallinex Limited
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