Weekly Trading Forecasts for Major Pairs (June 6 - 10, 2016)
5 June 2016, 19:12
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Here’s the market outlook for this week: Content courtesy of Tallinex Limited https://www.tallinex.com
EURUSD
Dominant bias: BullishPrice moved sideways in the context of a downtrend from Monday to Friday, only to be forcefully overturned by a skywards shot of 220 pips - closing at 1.1365. The bias has turned bullish, but there is a great challenge for bulls this week. The pair could go further north, but a serious bearish correction is likely when USD gains strength versus EUR because the outlook for EUR is bearish this month meaning EUR could be weak against all other currencies, and USD is no exception.
USDCHF
Dominant bias: Bearish
Tests of the 0.9950 resistance level occurred several times last week, but price could not stay above it, let alone reach the resistance level at 1.0000 (a parity area). Consolidation occurred until Friday, when price broke downwards and almost reached the support level at 0.9750. This significant bearish breakout has resulted in a Bearish Confirmation Pattern, so price could reach the support levels at 0.9700 and 0.9650. Should EURUSD lose strength, USDCHF will experience some buying pressure.
GBPUSD
Dominant bias: Bearish
Price attempted to go up last week, tested the distribution territory at 1.4700, and then dropped 300 pips to reach the accumulation territory at 1.4400 before rallying on Friday due to NFP. Most pairs and crosses will experience low volatility in June, but GBP pairs will remain highly volatile this month (if for no other reason than the looming Brexit referendum), resulting in a series of bearish and bullish movements. This week, some buying pressure might be witnessed on GBPUSD, as the accumulation territory at 1.4400 has checked repeated bearish attacks. However, that may be turned on its head due to a weekend poll showing the Brexit camp taking the lead for the first time.
USDJPY
Dominant bias: Bearish
This pair went sideways on Monday and Tuesday, but then began to drop like a stone. The decline on Friday was the strongest - extending the overall move to some 420 pips. Although the bearish trend could reverse this week, it is still possible for price to reach the demand levels 106.00 and 105.50 before a reversal begins.
EURJPY
Dominant bias: Bearish
There were some efforts made to push price upwards last week, but they evaporated once the supply zone at 124.00 was reached. When a break above that supply zone failed, a clean decline began, closing the week below the supply zone at 121.50. As with USDJPY, it remains possible for price to reach the demand zones at 120.50 and 120.00 before any bullish reversal.
I’d like to conclude this forecast with the following quote:
“My world is trading and markets. This is where I am very comfortable and extremely confident…” - Sam Seiden
Azeez Mustapha
Currency Analyst
Tallinex Limited
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