Weekly Trading Forecasts for Major Pairs (April 18 - 22, 2016)

17 April 2016, 20:36
1246536 Ernest G.
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Here’s the market outlook for this week:: Content courtesy of Tallinex Limited https://www.tallinex.com

 EURUSD

Dominant bias: Neutral
EURUSD traded lower last week - testing the support line at 1.1250 and closing at 1.1282 on Friday. Movement has essentially been sideways since the beginning of April, but there is a chance for bulls to effect a rally this week that may enable price to reach the resistance lines at 1.1350, 1.1400 and 1.1450, and result in the Euro strengthening against other majors, too.

USDCHF
Dominant bias: Bearish
Price moved upwards last week, but in the context of a downtrend. The support level at 0.9500 was tested before rising above the support level at 0.9650, which means the downtrend is currently being threatened. A move above the resistance level at 0.9750 will mean the end of the downtrend, but that is unlikely to happen. The USD outlook for this week is bearish, which could bring price down to the support levels at 0.9600, 0.9550 and 0.9500 and strengthen the existing downtrend.

GBPUSD
Dominant bias: Neutral
Volatility was obvious last week as neither bulls nor bears had the upper hand, but some directional movement is likely this week - most probably upwards, and may see price reaching the distribution territories at 1.4300, 1.4350 and 1.4400. In addition, the accumulation territories at 1.4100 and 1.4050 are likely to do a good job of thwarting bearish attempts this week. Strength in certain other GBP pairs (like GBPCAD) is also likely.

USDJPY
Dominant bias: Bearish
Price trended upwards 190 pips between Monday and Thursday, only to correct lower on Friday in line with the existing bearish bias. This means the rally was just a short-term rise in the context of a downtrend. Further bearish movement of at least 150 pips is expected this week, and any rallies should be taken as short-selling opportunities.

EURJPY
Dominant bias: Bearish
Following the steep drop in the first week of this month, this pair was caught in an equilibrium phase last week. That is unlikely to last as price should continue to drop owing to the Bearish Confirmation Pattern in the market. Friday closed below the supply zone at 123.00 so, if price breaks downwards, the demand zones at 122.00 and 121.50 might be tested. There will be no threat to the current Bearish Confirmation Pattern unless the supply zone at 126.00 is overcome.

I’d like to conclude this forecast with the following quote:

Support and resistance levels are generally more porous in volatile markets. Common sense suggests that, in these conditions, you should give the trade more room.” - Lee Bohl


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


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