Weekly Trading Forecasts for Major Pairs (September 19 - 23, 2016)

18 September 2016, 19:04
1246536 Ernest G.
0
43

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

EURUSD
Dominant bias: Bearish
The market moved sideways from Monday to Thursday last week, and then slid 85 pips on Friday. Had that break down failed to occur then the short-term bias would have become neutral, but being bearish, price might test the support lines at 1.1100 and 1.1050 this week. The current bearish bias will remain valid until the resistance line at 1.1300 is breached.

USDCHF
Dominant bias: Neutral
Although price trended upwards on Friday, the move was not significant enough to result in a clear market bias. The resistance level at 0.9800 was tested and almost breached, so a move above the resistance line at 0.9850 will result in a bullish bias - an even stronger bias if the resistance level at 0.9900 is also breached, though that would be quite difficult at this point in time. Looking to the downside, a move below the support level at 0.9650 will cancel the neutral bias and result in a bearish signal.

GBPUSD
Dominant bias: Bearish
Price dropped 280 pips last week to close below the distribution territory at 1.3000 on Friday. The market bias is bearish in the long- and short-term, and a Bearish Confirmation Pattern now exists, so price is expected to reach the accumulation territories at 1.2950, 1.2900 and 1.2850 this week (unless something fundamental changes the stance). All GBP pairs (except EURGBP) are currently bearish.

USDJPY
Dominant bias: Neutral
This market remained between the demand level at 103.50 and the supply level at 101.50 last week, resulting in a neutral bias in the near-term. This week, the most probable direction is down, which will become evident as momentum increases. There is a strong indication that all JPY pairs will turn bearish this week - in conjunction with their long-term bearish outlooks.

EURJPY
Dominant bias: Bearish
Price declined on Monday and recovered on Tuesday. Wednesday saw the market top at 116.08 before a 200 pip move south leading into the market close on Friday, which has resulted in a bearish signal. Since the outlook for JPY pairs is bearish, it is possible that the demand zones at 113.50 and 113.00 will be targeted this week.

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

It's tempting to tell ourselves that ‘it’s OK to wait’ and ‘the market will always be there’ - as we give ourselves excuses for not taking the next trade. But let’s face facts. If you sit on the sidelines for too long, you may just miss out on the opportunity that will double your trading equity.” - 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: