Weekly Trading Forecasts for Major Pairs (March 21 - 25, 2016)
20 March 2016, 19:23
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Here’s the market outlook for this week:: Content courtesy of Tallinex Limited https://www.tallinex.com
EURUSD
Dominant bias: BullishPrice moved down between Monday and Wednesday then broke upwards – gaining 280 pips by Thursday, before correcting slightly on Friday to close at 1.1269. The Euro outlook is bearish this week, so bulls will experience some difficulty pushing price higher, and this weakness could also be evident with other EUR pairs like EURCAD and EURNZD.
USDCHF
Dominant bias: Bearish
As anticipated, this pair took a serious battering - given what also happened to USDCAD, EURUSD, GBPUSD, NZDUSD, AUDUSD, etc. After consolidating from Monday to Wednesday, price dropped like a stone during Wednesday and Thursday, testing the support level at 0.9650. While further downward movement cannot be ruled out, the situation could change this week as USDCHF may rally considerably in response to the expected down trend of EURUSD.
GBPUSD
Dominant bias: Bullish
Cable was subject to strong movements last week. Price dipped 320 pips from Monday to Wednesday, only to rise again on the same day. Between Wednesday and Thursday, price actually climbed 440 pips, but bulls have met stubborn opposition at the 1.4500 distribution territory. Should price push beyond 1.4500, the next targets would be the distribution territories at 1.4550 and 1.4600. There are also probabilities of pullbacks along the way.
USDJPY
Dominant bias: Bearish
Price has been quite choppy for the last few weeks, but finally gave in to gravity last week and dropped 300 pips - ramming through the demand level at 111.00. Although there is a clean Bearish Confirmation Pattern in the market, price could actually rally this week - after all, price has been unable to close below that 111.00 demand level since September 2014. In fact, all JPY pairs are expected to rally this week, and USDJPY is unlikely to be an exception. It is therefore rational to assume the bearish journey of last week simply paved way for a bullish journey to occur this week.
EURJPY
Dominant bias: Bullish
This pair consolidated throughout last week, with no significant upwards or downwards movement. The bullish outlook is still somewhat valid, despite the ongoing consolidation, and a breakout likely to favor bulls is imminent. Trading against JPY pairs is not advised this week.
I’d like to conclude this forecast with the following quote:
“Effective traders are willing to get out of their comfort zones and try new things. I know it might be scary to go into the unknown, but to have more in life, you must take smart risks.” - Louise Bedford
Azeez Mustapha
Currency Analyst
Tallinex Limited
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