Weekly Trading Forecasts for Major Pairs (September 12 - 16, 2016)

11 September 2016, 18:58
1246536 Ernest G.
0
23

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

EURUSD
Dominant bias: Bullish
Last week saw the resistance line at 1.1300 tested, followed by a correction. The bullish bias remains valid, and the Euro is gaining strength while the Dollar weakens, so breaching the resistance line at 1.1300 and targeting the resistance line at 1.1350 is expected as the recent strengthening of the Euro has already caused some EUR pairs to start moving up.

USDCHF
Dominant bias: Neutral
There is currently no clear outlook, but there is going to be a directional movement this week - most probably downwards. EURUSD is likely to trend upwards (based on expected strength in the Euro), which should cause USDCHF to decline. Other contributing factors are impending weakness in USD, and a possible strengthening of CHF, so monitor CHF pairs for signs. The likely targets for this week are therefore the support levels at 0.9700, 0.9650 and 0.9600.

GBPUSD
Dominant bias: Bearish
GBPUSD is bearish in the long-term, though there is presently a fight against all odds to effect a meaningful rally. Price moved upwards 140 pips in the first two days of last week before starting a decline from Wednesday, and movement below the accumulation territory at 1.3100 will create a very strong Bearish Confirmation Pattern. However, movement above the distribution territory at 1.3450 will result in a near-term bullish outlook.

USDJPY
Dominant bias: Bearish
Last week saw a slide of 260 pips and a brief visit below the demand level at 101.50 before a 170-pip rally. The supply level at 103.00 was tested during the rally and further upside is possible this week - potentially ending the current bearish outlook. If that happens, the supply levels at 103.50 and 104.00 might be reached.

EURJPY
Dominant bias: Bullish
This pair is bullish in the short term and bearish in the long term. Efforts to move south were stalled last week as price was pushed from the demand zone at 114.00 towards the supply zone at 115.50 - cancelling the 200-pip pullback from Monday to Wednesday. Price should continue to push upwards due to expected weakness in the Yen so the outlook is bullish for JPY pairs this week.

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

Success in the long run for me is defined as consistently positive returns with a consistency for never losing too much money when things go wrong. For those starting out I think it is very important to develop a trading strategy that will stand a very good chance in working through all business cycles. The world looks very different now to what it looked like in 2006, 1999, 1991, 1982 and is forever changing. Trading strategies that depend on a certain market environment will always get found out when the market environment changes. As a trader you want to be trading from now till the day you drop dead.” - Anton Kreil (Source: Traders-mag.com)


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: