Weekly Trading Forecasts for Major Pairs (August 1 - 5, 2016)

31 July 2016, 20:11
1246536 Ernest G.
0
89

Here’s the market outlook for this week: Content courtesy of Tallinex Limited https://www.tallinex.com

EURUSD
Dominant bias: Bullish
A bullish journey ensued last week - going up 230 pips before topping out at 1.1195 and closing above the support line at 1.1150. There is now a bullish signal in this market, and the possibility of further upward movement. As mentioned in the previous article, major pairs (with the exception of GBPUSD) moved more strongly than they did from July 18 to 22. While USD remains weak, EURUSD will continue going up, and the Euro itself will rally against most major pairs during August - only meeting potential challenges against the Yen.

USDCHF
Dominant bias: Bearish
Contrary to expectation, price declined significantly because USD lost strength. Despite initially climbing over 90 pips to almost reach the resistance level at 0.9950, a setback occurred. From the high of 0.9949, price slid 300 pips and reached a weekly low of 0.9635. There is now a Bearish Confirmation Pattern in the market, so further decline is possible this week if USD remains weak.

GBPUSD
Dominant bias: Neutral
Another sideways week means the tight equilibrium phase remains valid, but a strong breakout of around 500 pips should occur this week or next. August should see GBP rally versus AUD and NZD, but may experience difficulties in doing so versus JPY (and possibly USD).

USDJPY
Dominant bias: Bearish
As anticipated, action turned bearish - dropping 450 pips last week. Bulls fought gallantly, but suffered ignominious defeat on Friday. Price is expected to reach the demand levels at 101.50, 101.00 and 100.50 this week, unless USD strength can oppose it. Selling pressure is also visible on other JPY pairs, and it is worth mentioning that the August outlook for JPY pairs is strongly bearish.

EURJPY
Dominant bias: Bearish
Like most other JPY pairs, price went south on Monday and Tuesday, but bulls halted the decline on Wednesday and Thursday. However, bearish pressure won on Friday as price fell 250 pips to close at 113.94. There is a clean bearish outlook for this market, so further decline is possible.

I’d like to conclude this forecast with the following quote:

Develop and adhere to a system, not random and erratic acts of inconsistent trading.” - Louise Bedford


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.

Share it with friends: