Weekly Trading Forecasts for Major Pairs (December 14 - 18, 2015)
13 December 2015, 23:38
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Here’s the market outlook for this week: Content courtesy of Tallinex Limited (https://www.tallinex.com)
EURUSD
Dominant bias: BullishEURUSD has been able to maintain the bullish breakout that started on December 3rd as price moved upwards by another 170 pips last week to close above the support line at 1.0950. There are resistance lines at 1.1000 and 1.1050, which could be tested as the bullish move continues, but a strong possibility exists that EURUSD will experience a vivid pullback this week or next.
USDCHF
Dominant bias: Bearish
Since November 30th, this pair has trended down almost 500 pips. The bias is bearish, and it would be difficult to trend upwards now (despite the fact that USD could strengthen against some other currencies), due to the strength of the Euro and the possibility of the Swiss Franc amassing strength. The support levels at 0.9800 and 0.9750 stand chances of being tested as the support level at 0.9800 was almost tested last week.
GBPUSD
Dominant bias: Bullish
This pair first trended lower on Monday and Tuesday… only for further bearish movement to be rejected as price assumed a smooth rally that has pushed price upwards by 250 pips and led to a Bullish Confirmation Pattern in the market. The possibility of further bullish movement is not downplayed, but the expectation for GBP pairs remains bearish for the month of December, so long positions should be treated with caution – especially as there could be a large pullback before the end of this month.
USDJPY
Dominant bias: Bearish
Bears were able to push USDJPY lower last week - ending the recent neutral bias on the market. Price fell some 250 pips to close just below the supply level at 121.00. This price action has triggered a “sell” signal, but the counter to this signal is the bullish expectation on JPY pairs, which could still happen anytime this month. Until a rally caused by the bullish expectation on JPY pairs occurs, the “sell” signal currently in the market should be respected.
EURJPY
Dominant bias: Bullish
EURJPY consolidated last week, and later went downwards, though the move was shallow, and in the context of an uptrend. However, the consolidation and shallow bearish movement were considerable enough to pose a threat to the extant bullish bias. A movement of 200 pips to the downside might mark the end of the bullish bias, although there is hope of further bullishness when JPY loses strength.
I’d like to conclude this forecast with the following quote:
“Although the price charts look the same today as they did long ago, the trade management needed constant adaptation. The markets are alive and forever changing.” - Joe Ross
Azeez Mustapha
Currency Analyst
Tallinex Limited
The Jaycees Building, Stoney Ground
PO Box 362, Kingstown, VC0100
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https://www.tallinex.com
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