Weekly Trading Forecasts for Major Pairs (May 30 - June 3, 2016)
29 May 2016, 19:25
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Here’s the market outlook for this week: Content courtesy of Tallinex Limited https://www.tallinex.com
EURUSDDominant bias: Bearish
As expected, EURUSD fell 110 pips last week, and there is a bearish signal in the market. Barring signs of USD vulnerability, price should continue trudging south this week, but could rally from perceptions of USD weakness.
USDCHF
Dominant bias: Bullish
This pair trended sideways last week, but moved slightly higher on Friday. There is a Bullish Confirmation Pattern in the market supporting the possibility of testing the resistance levels at 0.9950 and 1.0000 (parity of USD with CHF). However, getting above 1.0000 is unlikely because a threat of CHF strength remains.
GBPUSD
Dominant bias: Bullish
Cable climbed 200 pips to test the distribution territory at 1.4700 on May 25, but was unable to stay above that level as bears fought successfully to halt further gains by effecting an 80-pip correction. The probability of Cable rallying this week is currently higher than the probability of a significant decline. The market outlook is bullish, though constant presence of disgruntled bears is a threat.
USDJPY
Dominant bias: Neutral
This market was caught in an equilibrium phase throughout last week. Nonetheless, closer examination reveals that bulls are still willing to push price higher, and will gladly do so when conditions become favorable. In the event of a bullish breakout, the supply levels at 111.00 and 111.50 are likely targets, and the possibility exists while price remains above the demand levels at 108.50 and 108.00.
EURJPY
Dominant bias: Neutral
Price has been going sideways for 2 weeks, and that will continue until a break below the demand zone at 121.50 or above the supply zone at 125.50 occurs. Those demand and supply zones are strong, so this is now a waiting game, but price will ultimately overcome one of them. The longer this sideways movement continues, the more imminent a breakout becomes (and the stronger that breakout will be when it occurs).
I’d like to conclude this forecast with the following quote:
“The big dogs are making an average profit over lots of occurrences utilizing modern technology and the plethora of ways that they can trade. Even so, the little guys with smaller sized accounts can complete with them and, in many cases, outperform them. That’s because they are small and don’t have liquidity issues or regulatory restraints.” - Phil Newton (Source: Trade2win)
Azeez Mustapha
Currency Analyst
Tallinex Limited
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