Weekly Trading Forecasts for Major Pairs (July 25 - 2, 2016)
24 July 2016, 19:42
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Here’s the market outlook for this week: Content courtesy of Tallinex Limited https://www.tallinex.com
EURUSD
Dominant bias: BearishLast week saw a consolidation to the downside - moving south by just 100 pips, and closing above the support line at 1.0950 on Friday. There is a “sell” signal in the market which might test the support lines at 1.0900, 1.0850 and 1.0800 this week as USD is expected to gain some strength. Most major pairs were subdued last week, but movement this week should be stronger than last.
USDCHF
Dominant bias: Bullish
Bullishness was maintained last week despite constant bearish threats and, despite a lack of strong gain price is above the important support level of 0.9800. However, there is now a major bullish obstacle - the resistance level of 0.9900 which has seen failed attacks, but bulls are yet to give up. This week will be decisive because there must be a breach of the resistance level at 0.9900 to avoid a clear pullback, and one favourable factor is the expected strength in USD.
GBPUSD
Dominant bias: Neutral
This was another sideways week that resulted in a neutral outlook in the short-term, but this week will see a serious battle between bulls and bears - bulls want to push price upwards, but USD strength may make that difficult. Mixed results are expected for GBP pairs because GBP will be strong against some currencies like AUD and NZD, but likely weak versus others like JPY.
USDJPY
Dominant bias: Bullish
Price went up 200 pips last week - almost reaching the supply level at 107.50. Further bullish movement was rejected so the market corrected by roughly 150 pips. Although the 4-hour chart shows a Bullish Confirmation Pattern, the outlook on JPY pairs is bearish for this week so the correction could extend lower and lower, as the only factor able to help bulls is strength in USD.
EURJPY
Dominant bias: Bullish
Some effort was made to push price upwards, but the market topped at 118.46. Since JPY pairs may go south this week, the demand zones at 115.50, 115.00 and 114.50 could become potential bearish targets. If price drops below the demand zone at 114.00 then the outlook will have turned bearish.
I’d like to conclude this forecast with the following quote:
“Don’t let your day job keep you from indulging in the lucrative market.” - Ryan Mallory
Azeez Mustapha
Currency Analyst
Tallinex Limited
The Jaycees Building, Stoney Ground
PO Box 362, Kingstown, VC0100
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https://www.tallinex.com
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