Weekly Trading Forecasts for Major Pairs (July 20 - 24, 2015)

Here’s the market outlook for this week:

EURUSD
Dominant bias: Bearish
EURUSD dropped by 280 pips last week, going below the resistance lines at 1.0950 and 1.0900 - both of which were adamant obstacles to bearish interests. Now that those have been overcome, the next targets are the support lines at 1.0800 and 1.0750 where the aforementioned resistance lines should serve as obstacles to bullish attempts this week - their breach would be a threat to the current bearish outlook.

USDCHF
Dominant bias: Bullish
This pair went over 200 pips north last week, breaking above the support levels at 0.9500, 0.9550 and 0.9600. The support level at 0.9500 (which was formerly a resistance level) really proved obstinate for the bulls - opposing their efforts for over 2 weeks despite constant attack but, once overcome, price was able to rally smoothly. Since price has closed above the support level at 0.9600, it is possible that the resistance levels at 0.9650 and 0.9700 will now become targets as this bullish bias may continue until the end of the month, but things could reverse on a dime in the event of strength in CHF, which is also anticipated by the end of the month.

GBPUSD
Dominant bias: Bullish
Cable rose significantly last week, battering the distribution level at 1.5650, but bears fought back - so far preventing a breach. Nevertheless, bulls have continued to struggle for supremacy, and that is the reason behind the current consolidation in the market. Price should go out of balance this week - most probably upward.

USDJPY
Dominant bias: Bullish
Since testing the demand level at 120.50, this pair went upwards by 350 pips which put an end to the recent neutral outlook in the market and the outlook is now bullish. However, price needs to break through the supply level at 124.50 to avoid a massive bearish correction in the next two weeks.

EURJPY
Dominant bias: Bearish
This cross will continue to follow EURUSD. The only hope of a meaningful rally relies on great strength in the Euro or price will continue to drop as this bearishness is already formidable and there is expectation of massive gain in the Yen towards the end of this month.

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

“What makes trading so fascinating and, at the same time, difficult to learn is that you really don’t need lots of skills; you just need a winning attitude.” - Mark Douglas

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