Weekly Trading Forecasts for Major Pairs (May 16 - 20, 2016)
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
Privacy: You have been sent this email because of your existing relationship with Tallinex Limited - a company registered in St Vincent and the Grenadines (No. 22199 IBC 2014). We will send you similar updates periodically.
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
ADVISORY WARNING: Tallinex Limited provides references and links to selected blogs and other sources of economic and market information as an educational service to its clients and prospects but does not endorse the opinions or recommendations of the blogs or other sources of information. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospect’s individual analysis and decision making. None of the blogs or other sources of information is to be considered as constituting a track record. Past performance is no guarantee of future results and Tallinex Limited specifically advises clients and prospects to carefully review all claims and representations made by advisors, bloggers, money managers and system vendors before investing any funds or opening an account with any Forex dealer. Any news, opinions, research, data, or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Tallinex Limited expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information. As with all such advisory services, past results are never guarantee of future results.
