Weekly Trading Forecasts for Major Pairs (May 22 - May 26, 2017)

21 May 2017, 19:04
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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
This pair climbed 290 pips last week to close above the support line at 1.1200 and strengthen the recent bullish bias. The strong bullish momentum means that the resistance lines at 1.1250, 1.1300 and 1.1350 may be tested this week, but pullbacks may occur.

USDCHF
Dominant bias: Bearish
A drop of 280 pips last week (340 pips since May 12) saw a close below the resistance level at 0.9750. The current Bearish Confirmation Pattern suggests that further decline can be expected, so the support levels at 0.9700, 0.9650 and 0.9600 should be tested this week. Ultimately, price will continue to fall while EURUSD climbs.

GBPUSD
Dominant bias: Bullish
Friday saw the market close above the accumulation territory at 1.3000 (maintaining a bullish bias) and heading towards the distribution territory at 1.3050, which is likely to be tested this week. However, the possibility of a correction remains if bearish moves on other GBP pairs cause a ripple effect.

USDJPY
Dominant bias: Bearish
Dropping roughly 290 pips last week, breaking the demand level at 110.50, and closing above the demand level at 111.00 resulted in the bullish signal being overturned and a new short-term bearish signal forming. The demand levels at 110.00 and 109.50 may try to reject meaningful bearish moves as the outlook for JPY pairs is bullish this week.

EURJPY
Dominant bias: Bullish
This pair is still bullish, but volatile in the long-term. A zig-zag pattern has formed - going up on Monday and Tuesday, then dropping on Wednesday and Thursday, before climbing again on Friday. The current “buy” signal can push price towards the supply zones at 125.50, 126.00 and 127.50, these targets are likely to be exceeded - especially given the bullish outlook on JPY pairs.

This forecast is concluded with the quote below:

New and creative trading ideas are important for a trader to be able to stay ahead of the crowd, so doing whatever you can to prepare your mind to consider new ideas will help to develop creative trading strategies that are essential to profitable trading.” - Joes Ross


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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