Weekly Trading Forecasts for Major Pairs (January 11 - 15, 2016)

EURUSD

Dominant bias: Bearish
Price went south from Monday to Wednesday, but started a bullish journey on Thursday that continued into market close on Friday. Bulls will continue making attempts to push price higher, but that will not jeopardize the extant bearish outlook unless price goes above the resistance lines at 1.1000 and 1.1050. A close below the support line at 1.0800 will reinforce the extant bearish outlook.

USDCHF
Dominant bias: Bullish
USDCHF moved upwards between Monday and Wednesday - testing the resistance level at 1.0100 in the process, but despite desperate efforts, price was unable to break that resistance level. As a result, price pulled back at least 150 pips, and there is a risk of further pullback by the end of this week or early next. There is some probability of CHF becoming very strong this month, and will be visible on various CHF pairs if so. How long the effect will last (if it happens) is unclear - this is simply a seasonal tendency for CHF pairs that has occurred for many years; only interrupted by the unprecedented SNB event of January 2015.

GBPUSD
Dominant bias: Bearish
Cable fell 250 pips last week, bringing the total to 700 pips since December 14, 2015. There is a clean Bearish Confirmation Pattern in the market, and a high probability of the bearish movement continuing. The accumulation territories at 1.4000 and 1.3950 could be tested this week, and any rallies will be transient as the outlook for GBP pairs remains bearish.

USDJPY
Dominant bias: Bearish
This is a bear market that started a few weeks ago. Price dropped 250 pips last week - 500 pips since mid-December 2015. There is a lot of trading activity around the demand level at 117.50, which stands a good chance of being breached. Additional targets for this week are the demand levels at 117.00 and 116.50.

EURJPY
Dominant bias: Bearish
Price plunged 350 pips last week to reach the demand zone at 127.00. From there, price bounced in the context of a downtrend and tested the supply level at 129.00 - merely a bullish effort in the context of a downtrend as price cannot go up significantly while the Yen remains strong, so price could retest the demand zones at 127.50 and 127.00 this week.

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

“Be ready to take advantage of very lucrative opportunities. Traders can make the most money when volatility is high.” - Joe Ross


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


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