Weekly Trading Forecasts for Major Pairs (October 17 - 21, 2016)
16 October 2016, 21:06
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Here’s the market outlook for this week: Content courtesy of Tallinex Limited https://www.tallinex.com
EURUSDDominant bias: Bearish
Price trended downwards by 220 pips last week - closing below the resistance line at 1.1000, and heading for the support line at 1.0950. The support line at 1.0900 may eventually be targeted, but some opposition will be met. The bias is bearish, so any rallies should be taken as opportunities to sell short at better prices.
USDCHF
Dominant bias: Bullish
Price was able to trend upward last week - managing to reach the resistance level at 0.9900, but could not push higher. That may change this week due to perceived buying pressure and, once it does, the next targets will be the resistance levels at 0.9950 and 1.0000. It is unlikely that price will exceed parity, but the bias will remain bullish while EURUSD remains bearish.
GBPUSD
Dominant bias: Bearish
Cable plunged last week - reaching a low of 1.2088 on October 11 then consolidated until the end of the week. The bias is bearish in the short- and long-term, so it is logical to expect further decline once this consolidation ends. That does not rule out the possibility of a rally, but any rally is unlikely to threaten the current bearish bias. Movement on GBP pairs is expected increase in strength going into next week.
USDJPY
Dominant bias: Bullish
This market maintained its bullish stance as price continued trudging north. The supply level at 104.50 has been tested and will be tested again. Some bearish influence will be seen, but the bias will not turn bearish unless USD loses strength and price breaches the demand level at 102.00.
EURJPY
Dominant bias: Bearish
While there has been no significant short-term movement, a closer look at the market reveals that bearish influence has the upper hand, so moving higher may prove difficult while the Euro is somewhat weakened. Price is currently below the supply zone at 114.50, so may test the demand zones at 114.00 and 113.50 this week, but an unexpected push above the supply zone at 116.00 would result in a clear bullish signal.
I’d like to conclude this forecast with the following quote:
“My belief is that the markets are a very friendly place. Whatever you want in life, the markets will find a way to give it to you. I’m not being facetious here.” - Dr Van K Tharp
Azeez Mustapha
Currency Analyst
Tallinex Limited
The Jaycees Building, Stoney Ground
PO Box 362, Kingstown, VC0100
St Vincent and the Grenadines
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