Weekly Trading Forecasts for Major Pairs (April 25 - 29, 2016)

25 April 2016, 07:20
1246536 Ernest G.

Here’s the market outlook for this week:: Content courtesy of Tallinex Limited https://www.tallinex.com


Dominant bias: Bearish
This pair was bearish last week. Bulls did try to push price upwards, but strong opposition from bears forced price back down on Friday following the volatility of Thursday. There is a “sell” signal in the market, which may go down further this week to target the support lines at 1.1200 and 1.1150 - even beyond, and the “sell” signal will remain valid until the resistance line at 1.1400 is overcome.

Dominant bias: Bullish
The current bullish movement on this pair started on Wednesday and has led to a Bullish Confirmation Pattern in the market, so it is likely that price will continue upwards this week - targeting the resistance levels at 0.9800 and 0.9850. Movement above that area is also possible, though expected strength in CHF before the end of this week is a potential obstacle. Please watch CHF pairs closely.

Dominant bias: Bullish
As mentioned last week, GBP was able to rally against certain majors, and this was quite visible with pairs like GBPNZD, GBPJPY, GBPCHF, EURGBP, etc. GBPUSD also was bullish last week, despite some desperate bearish attempts to prevent it. Price trended up roughly 300 pips from the accumulation territory at 1.4150 and, despite some pullbacks, reached the distribution territory at 1.4450 before the market closed on a slight retracement. Further upward movement is expected this week.

Dominant bias: Bullish
Price moved up 370 pips last week following a gap down slightly into the demand level at 108.00. The rally took place gradually between Monday and Thursday, gaining momentum on Friday and resulting in a change of market outlook. The bias is now bullish, and further northward movement of at least 150 pips, is expected this week. However, there is also the possibility of a strong bearish movement on USDJPY (and of course, other JPY pairs) before the end of this week.

Dominant bias: Bullish
This pair also turned bullish last week after price ran into a solid demand zone at 122.00 and bounced 360 pips to close above the demand zone at 125.00 (actually, very close to the supply zone at 125.50) on Friday. This has invalidated the recent bearish outlook, and price should continue northward this week as there is now a Bullish Confirmation Pattern present. However, that does not rule out the probability of a pullback before the end of this month.

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

Markets are a reflection of rational human behavior — whether 5min or monthly chart. This fractal nature of markets is due to humans’ psychological make-up. Until we evolve into a new species, price action will always be the same.” - Gabriel Grammatidis

Azeez Mustapha
Currency Analyst
Tallinex Limited
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