Weekly Trading Forecasts for Major Pairs (May 25 - 29, 2015)
24 May 2015, 20:54
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Here’s the market outlook for this week:
EURUSD
Dominant bias: Bearish
This pair dropped by 430 pips last week, leading to a Bearish Confirmation Pattern in the chart. Price has already tested the support line at 1.1000, and could well test it again - possibly breaking through this time. The support lines at 1.0900 and 1.0850 are the probable targets for this week considering the current bearish bias.
USDCHF
Dominant bias: Bullish
Strength in the US Dollar has enabled this pair to climb from the support level at 0.9150 to reach the resistance level at 0.9450. This is a move of about 300 pips, and the possibility exists for price to continue upward, provided that CHF does not become too strong. However, strength in CHF has been expected since last week, and could manifest this week, affecting this and other CHF pairs.
GBPUSD
Dominant bias: Bullish
The current price action on Cable is a threat to the recent bullish trend. In fact, as soon as the accumulation territory at 1.5400 is breached, the recent bullish trend will be completely invalidated. Further weakness may cause price to test the accumulation territories at 1.5350 and 1.5300, but will not prevent bulls attempting to push price towards the distribution territories at 1.5600 and 1.5650.
USDJPY
Dominant bias: Bullish
USDJPY broke upwards significantly – a long-anticipated event during the recent protracted consolidation phase. A break above the demand level at 120.50 shows that the consolidation phase is over, and from there, price moved further north - testing and breaching the supply level at 121.50. More bullish movement is probable this week, and the bullish bias will remain valid as long as the demand level at 120.50 holds.
EURJPY
Dominant bias: Bearish
The movement of this cross is now largely determined by whatever happens to Euro; hence its present weakness. Price dropped over 250 pips last week, despite some sideways movement along the way. This cross has closed below the supply zone at 134.00 so the next target could be the demand zone at 133.00.
EURUSD
Dominant bias: Bearish
This pair dropped by 430 pips last week, leading to a Bearish Confirmation Pattern in the chart. Price has already tested the support line at 1.1000, and could well test it again - possibly breaking through this time. The support lines at 1.0900 and 1.0850 are the probable targets for this week considering the current bearish bias.
USDCHF
Dominant bias: Bullish
Strength in the US Dollar has enabled this pair to climb from the support level at 0.9150 to reach the resistance level at 0.9450. This is a move of about 300 pips, and the possibility exists for price to continue upward, provided that CHF does not become too strong. However, strength in CHF has been expected since last week, and could manifest this week, affecting this and other CHF pairs.
GBPUSD
Dominant bias: Bullish
The current price action on Cable is a threat to the recent bullish trend. In fact, as soon as the accumulation territory at 1.5400 is breached, the recent bullish trend will be completely invalidated. Further weakness may cause price to test the accumulation territories at 1.5350 and 1.5300, but will not prevent bulls attempting to push price towards the distribution territories at 1.5600 and 1.5650.
USDJPY
Dominant bias: Bullish
USDJPY broke upwards significantly – a long-anticipated event during the recent protracted consolidation phase. A break above the demand level at 120.50 shows that the consolidation phase is over, and from there, price moved further north - testing and breaching the supply level at 121.50. More bullish movement is probable this week, and the bullish bias will remain valid as long as the demand level at 120.50 holds.
EURJPY
Dominant bias: Bearish
The movement of this cross is now largely determined by whatever happens to Euro; hence its present weakness. Price dropped over 250 pips last week, despite some sideways movement along the way. This cross has closed below the supply zone at 134.00 so the next target could be the demand zone at 133.00.
