Weekly Trading Forecasts for Major Pairs (January 18 - 22, 2016)
Here’s the market outlook for this week:: Content courtesy of Tallinex Limited (https://www.tallinex.com)
EURUSD
Dominant bias: Neutral
This pair experienced short up-swings and down-swings, but showed no medium-term direction. Similar behavior is expected this week - a precursor to the possibility of significant movements around the end of this month (which may affect other major pairs too). There are currently support lines at 1.0850 and 1.0800, and resistance lines at 1.1000 and 1.1050. Price must get beyond one of these barriers in order to pave the way for that anticipated strong move, though probability suggests that the Euro will gain strength and cause all EUR pairs to rally.
USDCHF
Dominant bias: Neutral
The path of USDCHF will be determined by what happens to the Euro, as recent erratic movement has resulted in a neutral bias. There are support levels at 0.9950 and 0.9900, and resistance levels at 1.0050 and 1.0100, but a break to the downside is more likely because the resistance level at 1.0100 is now a major barrier to bulls that has successfully thwarted rally attempts over the last two weeks.
GBPUSD
Dominant bias: Bearish
Price dropped around 270 pips last week (300 from the Monday peak) - almost testing the accumulation territory at 1.4250 after a slide of 950 pips since mid-December 2015. There is a very strong bearish bias on the market, so it does not make sense to go long until there is a bullish retracement of about 300 pips (the only condition that can threaten the existing bearish bias) – until then, rallies simply offer new short-selling opportunities.
USDJPY
Dominant bias: Bearish
USDJPY consolidated last week, though it showed determination to continue downward. Price has dropped close to 600 pips since December 18, 2015, and tested the demand level at 116.50 on Friday (January 15). There is a Bearish Confirmation Pattern in this market, and it is possible for price to continue southward - just as certain other JPY pairs have done.
EURJPY
Dominant bias: Bearish
This cross fell sharply during the first week of this year, but simply moved sideways last week. The outlook is bearish, but that may be overturned by events affecting the Euro. If the Euro gains strength then a rally attempt might occur that pushes price in the opposite direction to other JPY pairs.
I’d like to conclude this forecast with the following quote:
“An ideal trading methodology should allow for limited risks and unlimited gains.” - Anonymous
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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