Weekly Trading Forecasts for Major Pairs (February 29 - March 4, 2016)
28 February 2016, 20:37
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Here’s the market outlook for this week:: Content courtesy of Tallinex Limited (https://www.tallinex.com)
EURUSD
Dominant bias: BearishTrading was lower on Monday, but then moved sideways until dropping further on Friday and closing at 1.0931. The overall decline was close to 200 pips but, despite the bearish outlook, the support lines at 1.0900 and 1.0850 are likely to challenge further downward movement. This week may see attempts to rally, which could turn into serious moves if bulls are sufficiently determined. In fact, all major pairs are likely to make significant short-term swings during March.
USDCHF
Dominant bias: Neutral
Price moved sideways last week - meandering between the support level at 0.9850 and the resistance level at 1.0000. One of those levels should be broken this week, but the support level is the most likely because the 1.0000 resistance level is a strong barrier, and because EURUSD is likely to rally. Whatever happens, this week should end to the current neutral bias.
GBPUSD
Dominant bias: Bearish
Price dropped over 430 pips last week - almost testing the accumulation territory at 1.3850, and creating a new 7-year low in the process. Further bearish movement is possible this week and next, so bounces should be viewed as short-selling opportunities. As predicted at the beginning of February, GBP pairs have been (and are) trending downwards and should remain under bearish pressure until the end of March, when strong rallies are expected.
USDJPY
Dominant bias: Bearish
Mid-week saw a bullish correction that has become a threat to the bearish outlook. Price should continue upwards this week - eventually invalidating the recent bearish outlook completely. There are already bullish signals on timeframes below 4 hours, and the correction is also visible on other JPY pairs - all of which should start displaying bullishness over the next two weeks as the outlook for JPY pairs is bright for March.
EURJPY
Dominant bias: Bearish
Price moved lower last week - reaching the demand zone at 122.50 on Wednesday before climbing more than 200 pips… a bullish correction also visible on other JPY pairs. Further northward movement of 250 pips will lead to a Bullish Confirmation Pattern, but price could also re-test the demand zone at 122.50 due to bearish reprisals (though a breach is unlikely).
I’d like to conclude this forecast with the following quote:
“I love the lifestyle of being a trader. I get to run my own business and set my own schedule. They say you should do what you love, and this is exactly what I love. What is there not to love? I wake up, take a few trades during the day, and I'm done! I can move on and enjoy the rest of my day. The best part of this life for me is that it allows me more time to spend with my children. I would not have this flexibility if I worked an 80-hour week in corporate America.” - Richard Mazur (Source: Collective2)
Azeez Mustapha
Currency Analyst
Tallinex Limited
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