Weekly Trading Forecasts for Major Pairs (May 16 - 20, 2016)

15 May 2016, 23:50
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: Bearish
This pair ambled sideways for the first few days of last week - the result of deadlock between bulls and bears, but Thursday saw bulls pummeled when price trundled south (as mentioned in our last forecast). Additional decline is anticipated this week, as USD is supposed to gain strength against major currencies such as AUD, CAD, NZD and EUR.

USDCHF
Dominant bias: Bullish
As forecast, USDCHF managed to move upwards last week despite desperate opposition from bears. The movement was shy of the 100 pips expected, so price now sits around the resistance level at 0.9750 - below the 0.9800 and 0.9850 targets for last week that are still valid this week because bulls are expected to push the market upwards… potentially even beyond those resistance levels.

GBPUSD
Dominant bias: Neutral
A classic equilibrium phase categorised last week, save for the slight dip witnessed on Friday, and the past several days have shown price unable to stay above the distribution territory at 1.4500 or below the accumulation territory at 1.4350. A breakout is imminent this week, and is likely to favor bears because USD should gain strength this week. However, GBP ought to make gains against other currencies - especially AUD and NZD, as the outlook for those pairs is bearish.

USDJPY
Dominant bias: Neutral
Price moved upwards on Monday and Tuesday then consolidated for the rest of last week. Since this pair (like most others) did not experience strong movement last week, the bias has turned neutral in the short term. However, there is the chance of a significant movement triggering that could drive price above the supply level at 110.50 or below the demand level at 107.50.

EURJPY
Dominant bias: Neutral
The initial bullish gains from the first few days of last week were forfeited to a bearish movement during the last few days of the week. There is a considerable degree of uncertainty surrounding this cross right now, but a major determinant for movement this week is conditions affecting Yen. Those conditions will also impact other JPY pairs.

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

Too often, people fail to differentiate wins that come from the market and wins that come from skill.” - Jack Schwager


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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