Weekly Trading Forecasts for Major Pairs (June 13 - 17, 2016)
12 June 2016, 20:38
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Here’s the market outlook for this week: Content courtesy of Tallinex Limited https://www.tallinex.com
EURUSD
Dominant bias: Neutral
EURUSD was in a downtrend for most of May, but a strong bullish breakout on June 3 led to a bullish signal. However, price was unable to maintain that trajectory the following week (last week) as price simply limped up 50 pips, hit the resistance line at 1.1400 and then nose-dived. This has pushed the market into neutral territory as the bullish gains of June 3 have been erased by the strong bearish correction of June 9-10, but bears cannot claim dominance until price drops below the resistance line at 1.1150. It is likely that EURUSD will continue downwards this week, though the bias may not turn bearish until the resistance line at 1.1150 is broken. For the bias to turn bullish again, price needs to break above the resistance line at 1.1350.USDCHF
Dominant bias: Bearish
This pair declined 180 pips last week - briefly venturing below the support level at 0.9600. Since June 3, price has fallen by 300 pips and reached a weekly low of 0.9577, so the support levels at 0.9600, 0.9550 and 0.9500 are the next targets. However, movement above the resistance level at 0.9800 will make the bearish outlook precarious.
GBPUSD
Dominant bias: Bearish
Price climbed 260 pips between Monday and Tuesday then, contrary to expectation, plunged 460 pips after testing the distribution territory at 1.4650. High volatility for GBP (and NZD) pairs was expected this month because GBP pairs usually exhibit strong moves in June while most other pairs experience low volatility. Bremain/Brexit issues are only a catalyst that will exacerbate the usual behavior, so this week is likely to be much like the last - strong bullish and bearish movements.
USDJPY
Dominant bias: Bearish
This market was flat last week. Even the faint bullish attempt on Monday and Tuesday meant nothing to the ongoing bearish outlook. There is a possibility of JPY pairs trending downwards this week, so price might test the demand levels at 106.00 and 105.50.
EURJPY
Dominant bias: Bearish
Price gained almost 170 pips between June 6 and 7, but the rally was curtailed by the supply zone at 122.50. From there, price fell 250 pips to close at 120.37 on Friday. There is a Bearish Confirmation Pattern in the market and further decline could be seen this week, so the demand zones at 120.00 and 110.00 will be interesting to watch.
I’d like to conclude this forecast with the following quote:
“Even after all these years, I still feel passionate about trading. I love trying to find profit opportunities. It's a great achievement when you can beat the pros.” - Jay McGivney
Azeez Mustapha
Currency Analyst
Tallinex Limited
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