Weekly Trading Forecasts for Major Pairs (November 30 - December 4, 2015
29 November 2015, 20:39
0
111
Here’s the market outlook for this week: Content courtesy of Tallinex Limited (https://www.tallinex.com)
EURUSD
Dominant bias: Bearish
EURUSD consolidated to the downside last week, which occurred in the context of a downtrend, and there are resistance lines at 1.0750 and 1.0800 that could stifle any attempts to rally. There are also support lines at 1.0500 and 1.0450, which are the current targets as further bearish movement is possible, so any attempts at a rally should be taken as false breakouts. The Euro was expected to be weak in December, so EUR pairs should mostly be bearish.
USDCHF
Dominant bias: Bullish
This pair managed to go upwards an additional 100 pips last week - supporting the extant bullish bias. Since breaking above the great psychological level of 1.0000, price has moved upward by 300 pips to test the resistance level at 1.0300. This bullish journey is likely to continue this week as the outlook for USD is bright for December (as it is for CAD).
GBPUSD
Dominant bias: Bearish
GBPUSD moved down even further last week, closing below the distribution territory at 1.5050, and continuous southerly movement is expected for most of December and into 2016. Any rallies observed this month should be taken as short-selling opportunities because the accumulation territories at 1.4900, 1.4800 and 1.4700 should all give way during December. In fact, GBP should fall sharply against other major currencies, so positions favoring GBP are not recommended.
USDJPY
Dominant bias: Neutral
This pair just moved sideways last week, so the near-term outlook has now become neutral. A breakout is expected this week, and should either take price below the demand levels at 122.00 and 121.50; or above the supply levels at 123.50 and 124.00. However, to qualify as a serious breakout, price must close below the demand level at 121.50 or above the supply level at 124.00. Logically, a breakout to the upside is much more likely, due to the bright outlook on the US dollar.
EURJPY
Dominant bias: Bearish
The difficulty for this cross to rally significantly while EUR is weak (unless JPY experienced an extraordinary loss of strength) has already been mentioned, and price has demonstrated its willingness to continue moving south: There is still a Bearish Confirmation Pattern in the market and JPY pairs should display a pleasant level of volatility coupled with predictable movements during December.
I’d like to conclude this forecast with the following quote:
“Volatility and lucrative market movement should continue for many years to come, providing nearly endless opportunities for the well-prepared trader.” - Scott Andrews
Azeez Mustapha
Currency Analyst
Tallinex Limited
The Jaycees Building, Stoney Ground
PO Box 362, Kingstown, VC0100
St Vincent and the Grenadines
https://www.tallinex.com
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
ADVISORY WARNING: Tallinex Limited provides references and links to selected blogs and other sources of economic and market information as an educational service to its clients and prospects but does not endorse the opinions or recommendations of the blogs or other sources of information. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospect’s individual analysis and decision making. None of the blogs or other sources of information is to be considered as constituting a track record. Past performance is no guarantee of future results and Tallinex Limited specifically advises clients and prospects to carefully review all claims and representations made by advisors, bloggers, money managers and system vendors before investing any funds or opening an account with any Forex dealer. Any news, opinions, research, data, or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Tallinex Limited expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information. As with all such advisory services, past results are never guarantee of future results.
EURUSD
Dominant bias: Bearish
EURUSD consolidated to the downside last week, which occurred in the context of a downtrend, and there are resistance lines at 1.0750 and 1.0800 that could stifle any attempts to rally. There are also support lines at 1.0500 and 1.0450, which are the current targets as further bearish movement is possible, so any attempts at a rally should be taken as false breakouts. The Euro was expected to be weak in December, so EUR pairs should mostly be bearish.
USDCHF
Dominant bias: Bullish
This pair managed to go upwards an additional 100 pips last week - supporting the extant bullish bias. Since breaking above the great psychological level of 1.0000, price has moved upward by 300 pips to test the resistance level at 1.0300. This bullish journey is likely to continue this week as the outlook for USD is bright for December (as it is for CAD).
GBPUSD
Dominant bias: Bearish
GBPUSD moved down even further last week, closing below the distribution territory at 1.5050, and continuous southerly movement is expected for most of December and into 2016. Any rallies observed this month should be taken as short-selling opportunities because the accumulation territories at 1.4900, 1.4800 and 1.4700 should all give way during December. In fact, GBP should fall sharply against other major currencies, so positions favoring GBP are not recommended.
USDJPY
Dominant bias: Neutral
This pair just moved sideways last week, so the near-term outlook has now become neutral. A breakout is expected this week, and should either take price below the demand levels at 122.00 and 121.50; or above the supply levels at 123.50 and 124.00. However, to qualify as a serious breakout, price must close below the demand level at 121.50 or above the supply level at 124.00. Logically, a breakout to the upside is much more likely, due to the bright outlook on the US dollar.
EURJPY
Dominant bias: Bearish
The difficulty for this cross to rally significantly while EUR is weak (unless JPY experienced an extraordinary loss of strength) has already been mentioned, and price has demonstrated its willingness to continue moving south: There is still a Bearish Confirmation Pattern in the market and JPY pairs should display a pleasant level of volatility coupled with predictable movements during December.
I’d like to conclude this forecast with the following quote:
“Volatility and lucrative market movement should continue for many years to come, providing nearly endless opportunities for the well-prepared trader.” - Scott Andrews
Azeez Mustapha
Currency Analyst
Tallinex Limited
The Jaycees Building, Stoney Ground
PO Box 362, Kingstown, VC0100
St Vincent and the Grenadines
https://www.tallinex.com
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
ADVISORY WARNING: Tallinex Limited provides references and links to selected blogs and other sources of economic and market information as an educational service to its clients and prospects but does not endorse the opinions or recommendations of the blogs or other sources of information. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospect’s individual analysis and decision making. None of the blogs or other sources of information is to be considered as constituting a track record. Past performance is no guarantee of future results and Tallinex Limited specifically advises clients and prospects to carefully review all claims and representations made by advisors, bloggers, money managers and system vendors before investing any funds or opening an account with any Forex dealer. Any news, opinions, research, data, or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Tallinex Limited expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information. As with all such advisory services, past results are never guarantee of future results.
