Weekly Trading Forecasts for Major Pairs (May 23 - 27, 2016)
22 May 2016, 20:49
0
75
Here’s the market outlook for this week:: Content courtesy of Tallinex Limited https://www.tallinex.com
EURUSD
Dominant bias: BearishEURUSD dropped last week and closed below the resistance line at 1.1250. There is a bearish bias on this market, so the support lines at 1.1150 and 1.1100 could be tested, but that will require on-going strength in USD as EUR is likely to gain strength this week – especially against currencies like CAD, CHF and JPY). Any vulnerability in USD may therefore result in a rally.
USDCHF
Dominant bias: Bullish
As expected, price was able to continue northward last week - gaining roughly by 160 pips and closing slightly above the support level at 0.9900. There is currently only one threat to the existing bullish outlook - the possibility of CHF strength.
GBPUSD
Dominant bias: Neutral
GBP gained against other currencies last week (as expected) but, surprisingly, also gained over 300 pips against USD - price finally reaching the distribution territory at 1.4650 where the buying pressure was truncated. Further gains would have resulted in a clean Bullish Confirmation Pattern in the market, but bears effected a correction of 140 pips which forced the market back into neutral territory. There will be mixed signals in the market this week because GBP will be strong versus some currencies, but weak versus others. In the case of GBPUSD, further gains are possible.
USDJPY
Dominant bias: Bullish
Price climbed more than 170 pips last week to reach the supply level at 110.50. There is a Bullish Confirmation Pattern in the market, and price may extend further upwards this week to the supply levels at 111.00, 111.50, and 112.00. There are demand levels at 109.00 and 109.50 which should resist bearish efforts, so the bullish outlook makes sense while price stays above those demand levels.
EURJPY
Dominant bias: Neutral
This pair ambled sideways last week, consolidating between the demand zone at 123.00 and the supply zone at 124.00. The possibility of a breakout is very strong this week – most likely in favour of bulls, in which case, price may target the supply levels at 125.00 and 126.00. Bullishness should also be witnessed on other JPY pairs.
I’d like to conclude this forecast with the following quote:
“When a trader sees the market as it really is, rather than what they want to see, the act of trading becomes more relaxed and they become more confident and successful. Does this sound like the type of experience you want trading to be?” - Rebecca Price (Van Tharp Institute)
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.
