Weekly Trading Forecasts for Major Pairs (October 7 - 11, 2016)

6 November 2016, 19:26
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Here’s the market outlook for this week: Content courtesy of Tallinex Limited https://www.tallinex.com

 EURUSD

Dominant bias: Bullish
From a weekly low of 1.0935, price climbed over 200 pips to close the week above the support line at 1.1100 and near to the resistance line at 1.1150, a breach of which would allow a shot at the 1.1200 and 1.1250 resistance lines. The bullish signal that has formed will remain valid until the support line at 1.1000 is broken.

USDCHF
Dominant bias: Bearish
Breaching the psychological level at 1.0000 proved too much for this pair - the attempt on October 25 quickly failed before parity was even tested. I mentioned that failure to breach parity might result in a serious pullback, and that was exactly what happened - price pulled back significantly last week and closed below the resistance level at 0.9700 on Friday. The 210-pip drop has resulted in a Bearish Confirmation Pattern and further decline is possible this week unless USD acquires some strength.

GBPUSD
Dominant bias: Bullish
Following a few weeks of consolidation, last week saw a massive rally as price jumped 370 pips to test the distribution territory at 1.2550. The bias has already turned bullish in the short term, but it will need another 1000-pip move to the upside before the daily chart bias turns bullish. There is now strong buying pressure in the market, which should continue this week. Unless USD gains strength, price might reach the distribution territories at 1.2650, 1.2700 and 1.2750.

USDJPY
Dominant bias: Bearish
Price consolidated on Monday and then plummeted on Tuesday - almost testing the demand level at 102.50, and bringing an end the recent bullish bias. The demand level at 102.50 will eventually be tested, and probably breached. However, there is also the possibility of JPY pairs making some bullish attempts this week.

EURJPY
Dominant bias: Bullish
This pair hardly moved last week and, unlike USDJPY, it engaged in a slight bearish correction in the middle of the week that was interrupted on Friday as the market closed on a bullish note. This week will be mostly influenced by the Euro - either causing a break above the supply zone at 115.50 or below the demand zone at 113.50.

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

I'm a full time trader. Nothing else…For all of you guys that think trading full time isn't possible, well I'm here to tell you it is. I actually met another full time trader the other day at the basketball court (trading for 20 years) and he trades millions of dollars. So I don't understand why people think that trading full time a myth...” - MarketAddict (Source: Elitetrader.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


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