Weekly Trading Forecasts for Major Pairs (August 15 - 19, 2016)

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

EURUSD

Dominant bias: Bullish
Price consolidated on Monday then went up 130 pips on Tuesday - testing the resistance line at 1.1200 and closing above the support line at 1.1150. Price could push higher this week, but may also drop due to Euro weakness versus other majors (except GBP, which is currently weaker than the Euro). The current bullish bias will change once price falls below the support line at 1.1050.

USDCHF
Dominant bias: Bearish
There is a “sell” signal on this pair - especially in the near-term, and the support levels at 0.9700 and 0.9650 could be tested this week. However, the expected bearishness of EURUSD might halt the move south and support a rally that results in a Bullish Confirmation Pattern. But, without EURUSD weakness this week, price will continue moving south.

GBPUSD
Dominant bias: Bearish
As expected, further decline occurred last week (170 pips) - closing below the distribution territory at 1.2950 on Friday. Like other GBP pairs (except EURGBP), the outlook is bearish this week, so the accumulation territories at 1.2900, 1.2850 and 1.2800 could be tested. The only thing able to reverse the current weakness is a very favorable fundamental factor for GBP or a very unfavorable factor for USD.

USDJPY
Dominant bias: Bearish
The anticipated bearishness was maintained throughout last week - scuttling attempts at a protracted rally. After each rally, bears came in to push price down again and preserve the current bearish bias. This week, price is likely to target the demand levels at 100.50 and 100.00, but the chance of a strong reversal exists if JPY loses strength.

EURJPY
Dominant bias: Bearish
Movement was essentially flat last week, though that has not affected the current downtrend. Price will need to consolidate for another week or two before the bias can turn neutral; otherwise a continuation of the downtrend or a temporary reversal (able to threaten the current bias) is possible. A reversal may occur, but should not last very long because of the bearish outlook on JPY pairs, and because the Euro is expected to be weak this week.

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

“Good trading habits are an important factor in successful trading.” - Gabriel Grammatidis

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

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