Weekly Trading Forecasts for Major Pairs (March 7 - 11, 2016)
6 March 2016, 21:04
0
94
Here’s the market outlook for this week:: Content courtesy of Tallinex Limited (https://www.tallinex.com)
EURUSD
Dominant bias: Bearish
As previously mentioned, EURUSD has been making some bullish attempts, but were not significant enough to render the bearish bias invalid. Price was pushed down, but met stiff resistance at the 1.0850 support line, so moved sideways until breaking upwards over 160 pips from Thursday. The bullish activity will likely continue this week, so the resistance lines at 1.1050 and 1.1100 may be reached.USDCHF
Dominant bias: Neutral
Price traded sideways last week - generally between the support level at 0.9900 and the resistance level at 1.0000. However, there should be a breakout this week that will most probably favor sellers because this pair will continue to be influenced by gravity while EURUSD is bullish. The support level at 0.9800 is likely to be tested this week.
GBPUSD
Dominant bias: Bullish
The bias on Cable is now bullish following the 400 pip upward move last week that almost tested the distribution territory at 1.4250 (after bouncing from the accumulation territory at 1.3850 on Monday). With a Bullish Confirmation Pattern in the market, it is much more likely that Cable will move up by at least another 200 pips this week.
USDJPY
Dominant bias: Neutral
Unlike most other JPY pairs (which traded upwards last week), USDJPY moved sideways. This is because USD is not strong enough to take advantage of the weak JPY as other pairs (like AUDJPY and NZDJPY) have done. In fact, we can see that USD is weak versus other major pairs (like AUDUSD, NZDUSD, GBPUSD, etc.). This week, there is some probability that USDJPY will continue sideways, or possibly even consolidate to the downside, as a significant rally is unlikely while USD is weak.
EURJPY
Dominant bias: Bearish
Price traded downwards on Monday - briefly moving below the demand zone at 122.50 on Tuesday before starting a bullish move on the same day (March 1) that had climbed almost 450 pips by the end of the week. The supply zone at 125.50 has already been tested, and will be breached as bulls continue to push price upwards. The supply levels at 126.00 and 126.50 are potential targets for this week.
I’d like to conclude this forecast with the following quote:
“How about your trading? What reward/risk ratio do you think is acceptable on your trades? Do you have a defined targeted ratio before you enter a position and an acceptable effective ratio resulting from your trades? Do you manage your current reward risk ratio on open positions? Developing a strong and deeper understanding of your reward to risk management can be a great edge and a path to trading mastery.” - Sam Eder (Source: Vantharp.com)
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
Privacy: You have been sent this email because of your existing relationship with Tallinex Limited - a company registered in St Vincent and the Grenadines (No. 22199 IBC 2014). We will send you similar updates periodically.
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
ADVISORY WARNING: Tallinex Limited provides references and links to selected blogs and other sources of economic and market information as an educational service to its clients and prospects but does not endorse the opinions or recommendations of the blogs or other sources of information. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospect’s individual analysis and decision making. None of the blogs or other sources of information is to be considered as constituting a track record. Past performance is no guarantee of future results and Tallinex Limited specifically advises clients and prospects to carefully review all claims and representations made by advisors, bloggers, money managers and system vendors before investing any funds or opening an account with any Forex dealer. Any news, opinions, research, data, or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Tallinex Limited expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information. As with all such advisory services, past results are never guarantee of future results.
