Weekly Trading Forecasts for Major Pairs (January 25 - 29, 2016
24 January 2016, 20:18
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Here’s the market outlook for this week:: Content courtesy of Tallinex Limited (https://www.tallinex.com)
EURUSDDominant bias: Bearish
As expected, EURUSD experienced no significant moves last week, though price trailed lower - resulting in a bearish signal as there is now a Bearish Confirmation Pattern for this market and bearish targets at the support lines of 1.0750 and 1.0700. EURUSD (and other EUR pairs) should now become weaker, and very strong movements should occur for most (major) pairs and crosses over the next two weeks.
USDCHF
Dominant bias: Bullish
This pair moved around 140 pips higher last week - resulting in a bullish outlook as the previously adamant resistance level at 1.0100 (which is now a support level) was broken. Price is currently above the support level at 1.0150, and threatening to go further north. The outlook for USD is now bullish, and should be reflected in all USD pairs except USDCAD, because all other currencies are weak compared to CAD - a situation expected to continue for some time.
GBPUSD
Dominant bias: Bearish
Cable reached a low of 1.4078 and a high of 1.4362 last week - making a bullish effort in the context of a downtrend. The bias will remain bearish until price goes above the distribution territory at 1.4500 - a daunting task for bulls as they are faced with a strengthening USD. Cable is therefore likely to experience some pullbacks this week.
USDJPY
Dominant bias: Bearish
This pair tested the demand level at 116.00 before bouncing upwards roughly 280 pips to close at 118.77 on Friday. The rally was strong enough to become a threat to the recent bearish bias, which will be invalidated if the supply level at 119.50 is overcome. The possibility of an extended rally is high due to the expected strength in USD. Strong volatility is likely on JPY pairs until the end of the month.
EURJPY
Dominant bias: Bearish
EURJPY consolidated throughout last week - even bearish breakouts were quickly countered by bullish corrections. Bulls and bears are presently engaged in a deadlock struggle, but one that will soon end, as a directional movement is expected this week (though a rally might prove difficult while EUR is weak). High volatility is expected.
I’d like to conclude this forecast with the following quote:
“Learning the business of trading is basically no different from learning any other business. Winning means learning major guidelines and concepts that you repeat so often in your own behavior that they become good habits. These good habits then become automatic behavior patterns…” - Andy Jordan
Azeez Mustapha
Currency Analyst
Tallinex Limited
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