Tag Archives: Weekly Forecast

Weekly Trading Forecasts on Major Pairs (July 21 – 25, 2014)‏

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EURUSD
Dominant bias: Bearish
The dominant bias for this week is unchanged. The bearish trend in the market is now particularly strong, and could well continue that way for a while. Price may reach the support lines of 1.3500 and 1.3450 within the next few trading days but, meanwhile, there could be rallies in the context of the downtrend which may take price towards the resistance lines at 1.3550 and 1.3600 respectively. Those resistance lines, however, ought to act as a serious impediment to rallies aiming to invalidate the bearish bias.

USDCHF
Dominant bias: Bullish
In contrast to what EUR/USD is doing, this pair is in an uptrend. It is currently trading above the support level at 0.8950, and it should go further upwards following the current shallow retracement in the market. However, it is very unlikely that the great resistance level at 0.9000 will be breached to the upside, so bulls may want to take their profits at around that level. Price managing to breach the resistance level at 0.9000 and closing above it will indicate significant intent in the market and a continuation of the bullish bias.

GBPUSD
Dominant bias: Bullish
This currency pair has been able to maintain its recent bullish outlook in spite of its present inability to extend upwards in any significant way. The inability to move further upwards in a significant fashion has also resulted in a great risk of price sliding back down. In fact, any movement below the accumulation territory at 1.7050 would mean the bullish outlook has been rendered totally invalid. To avoid this, price needs to stay above that accumulation territory and, better still, move upwards again.

USDJPY
Dominant bias: Bearish
This market is still able to maintain its bearish bias as a result of strength in the Yen. The bearish outlook is expected to continue, though things may not be as significant as the situation on other JPY pairs. The demand level at 101.00 should, at least, be tested.

EURJPY
Dominant bias: Bearish
The weakness of this cross, brought about by weakness in the Euro plus strength in the Yen, has resulted in a clean Bearish Confirmation Pattern. Price is expected to continue downward, though the probabilities of transitory rallies and consolidations cannot be ruled out along the way.

Weekly Trading Forecasts on Major Pairs (June 30 – July 4, 2014)‏

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Here’s the market outlook for this week:

EURUSD-PairEURUSD
Dominant bias: Bullish
This pair is now in an uptrend, though the movement is tardy and shaky. Price has been very volatile as the bulls and bears fight for control. As a result of the Bullish Confirmation Pattern in the market, it is more likely that this pair will go further upwards. The resistance line at 1.3650 was tested and could be tested again, suggesting a breach to the upside.
 

 

USDCHF-PairUSDCHF
Dominant bias: Bearish
USD/CHF has also been slow and tardy, but bearish in outlook. So far, the market has been able to maintain its bearish bias, going lower in a slow and steady manner. This downward move is also riddled with high volatility. Since sellers have supremacy here, there is a possibility that price may reach the support level at 0.8900.

 

 

GBPUSD-PairGBPUSD
Dominant bias: Bullish
Here, the barrier to further northward movement remains the distribution territory at 1.7050, which was vigorously tested last week. It was tested this week as well but price is yet to close above it. After suffering a transient setback, price is now trying to go upwards to challenge the distribution territory again. This must be broken for the bullish outlook to maintain its validity.

 

 

USDJPY-Pair-05USDJPY
Dominant bias: Bearish
Short-term orders appear more logical than long-term ones at the moment, because the recent signals have been short-lived. Right now, there is a bearish indication in the market, so it makes sense to seek short trades.

 

 

EURJPYEURJPY
Dominant bias: Bearish
The recent ‘buy’ signal on this cross was weak and unsustainable. The bias has turned bearish because of perceived strength in the Yen. The EUR position is too delicate, and this is reflected in its weakness against the Yen. Price tested the demand zone at 138.00; and with renewed bearish effort, it could go lower to test the demand zone at 137.00.

 

 

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

“It is the sum of all trades that is relevant for the trading result, not the single trade.” – Jens Klatt