Weekly Trading Forecasts for Major Pairs (October 24 - 28, 2016)
23 October 2016, 18:57
0
104
Here’s the market outlook for this week: Content courtesy of Tallinex Limited https://www.tallinex.com
EURUSD
Dominant bias: Bearish
Last week saw a drop of over 100 pips - over 300 pips since October 10, and resulting in a Bearish Confirmation Pattern. The outlook for EUR pairs is bearish for this week, so slow and steady downward movement is expected - possibly testing the support lines at 1.0850 and 1.0800. Rallies will be opportunities to sell short at better prices.USDCHF
Dominant bias: Bullish
A decisive siege was laid at the 0.9900 support level (formerly a resistance level) from October 12 to 20. As expected, breaching that level was not easy, but resistance finally collapsed on October 20 - partly due to existing strength in USD. Price was able to close above the 0.9900 support level after testing the resistance level at 0.9950 and retracing, so further bullish movement is possible this week because USD is strong and CHF is not. Other currencies are also likely to rally against CHF, which should provide additional moral support for USD moving higher, though a significant move is unlikely.
GBPUSD
Dominant bias: Bearish
The market managed a shallow rally from Monday to Wednesday, before consolidating into the weekend. As hinted in the last forecast, this week should see more volatility on GBP pairs than last, and bring an end the present consolidation as momentum rises. The outlook for GBP pairs is bullish this week, but rallies are not expected to influence the dominant bearish bias for this market.
USDJPY
Dominant bias: Bullish
Price went sideways last week in the context of an uptrend. The outlook on JPY pairs is bullish this week, so price might be able to rise towards the supply levels at 104.50, 105.00 and 105.50 - a situation that could lead to a strong Bullish Confirmation Pattern in the 4-hour chart. Meanwhile, the supply levels at 103.00 and 102.50 should serve to restrict large pullbacks.
EURJPY
Dominant bias: Bearish
There is a bearish signal on this pair after price fell 170 pips last week. One factor that has contributed greatly to this bearish signal is the weakness of the Euro itself, and the only factor that could invoke a rally is the possibility of weakness in the Yen.
I’d like to conclude this forecast with the following quote:
“When you understand the rules of the game, you can play the game like a master...” - James Altucher
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
