Weekly Trading Forecasts for Major Pairs (April 4 - 8, 2016)
Here’s the market outlook for this week:: Content courtesy of Tallinex Limited https://www.tallinex.com
EURUSD
Dominant bias: Bullish
Price moved up 250 pips last week and tested the resistance line at 1.1400 - a level that proved an obstacle to bulls as there was no close above last week. Price may move beyond that line at some point, but probably not by too much. A large pull-back is possible this week, which may touch the support lines at 1.1300 and 1.1250.
USDCHF
Dominant bias: Bearish
This pair declined 200 pips last week and closed below the resistance level at 0.9600. The support levels at 0.9550 and 0.9500 could be breached this week, but a rally strong enough to threaten the current bearish bias is also possible. If price moves above the resistance level at 0.9850, that will result in a clean Bullish Confirmation Pattern.
GBPUSD
Dominant bias: Bearish
Cable climbed 330 pips between Monday and Wednesday to reach the distribution territory at 1.4450. Bears then effected a 250 pip correction that may extend another 100 - 200 pips, but an exponential rally is looming, and will eventually invalidate the current bearish outlook. The April outlook for GBP is bright and, as a result, GBP should start gaining strength - creating wild fluctuations against major currencies like AUD and NZD.
USDJPY
Dominant bias: Bearish
There is currently a sell signal for this pair due to a Bearish Confirmation Pattern. Price closed below the supply level at 112.00 en route to the demand levels at 111.50 and 111.00. Long trades will not make sense before a clean indication of bulls’ hegemony, which will only be brought about by serious weakness in the Yen. Movement for this month should be mostly bearish.
EURJPY
Dominant bias: Bullish
Bulls were able to push this pair up to the supply zone at 128.00. There has since been a shallow pullback that caused the close at 127.24 on April 1st. Further bullish movement is possible this week, though another bearish run before the end of the month is likely. Overall, JPY pairs are expected to continue upwards this week (and perhaps next), but they will begin to head south before the end of the month.
I’d like to conclude this forecast with the following quote:
“Most traders will tell you their success came from finding the approach that best suits them and pushing through it to get better and better.” - EliteTrader
Azeez Mustapha
Currency Analyst
Tallinex Limited
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