Weekly Trading Forecasts for Major Pairs (October 10 - 14, 2016)

9 October 2016, 20:43
1246536 Ernest G.

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

Dominant bias: Neutral
The bias remains neutral (despite strong volatility on other pairs last week) as price simply went below the support line at 1.1150 then moved up and closed at the 1.1200 resistance line. The neutral bias is likely to persist for some time, but strong momentum is expected soon. Price must break the resistance line at 1.1350 (or the support line at 1.1050) before the neutral bias can be considered over. This week, the most probable direction for EURUSD (and some other EUR pairs) is down.

Dominant bias: Bullish
The outlook is long-term neutral, but bullish in the short-term. Price went up on Monday and Tuesday, nose-dived on Wednesday, went up again on Thursday, and corrected again on Friday. While further gains are possible, upward movement would be limited because there is little chance of price getting above the resistance level at 0.9900.

Dominant bias: Bearish
A strong Bearish Confirmation Pattern exists for this market - most other GBP pairs, too. As predicted last week, price dropped - spiking sharply almost 900 pips and booking a 30+ year low of around 1.1993 in the process, before recovering around 440 pips to close at 1.2429. What next? Well, the outlook for this week is bullish (which is also true of some other GBP pairs) so price should climb this week, but not significantly enough to override the long-term bearish outlook.

Dominant bias: Bullish
As anticipated, price broke upwards 280 pips last week - ending the recent equilibrium phase and testing the supply level at 104.00 before correcting by 100 pips. Price closed below the supply level at 103.00 on Friday, so that could be a good opportunity to seek long trades in the context of an uptrend. The outlook on JPY pairs remains bullish, so price could rise by an additional 150 pips this week.

Dominant bias: Bullish
Just like USDJPY, price climbed hard last week and tested the supply zone at 116.00 pips before correcting by 90 pips. There is a Bullish Confirmation Pattern in the market, so further gains may occur this week and end the current bearish correction. If so, likely targets are the supply zones at 115.50, 116.00, and 116.50.

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

I learned that the market truly is your greatest teacher and that trading is a skill you must nurture and develop. The more time you spend in the market, the better you are able to understand market movements.” - Michael Patak

Azeez Mustapha
Currency Analyst
Tallinex Limited
The Jaycees Building, Stoney Ground
PO Box 362, Kingstown, VC0100
St Vincent and the Grenadines

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: