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Weekly Trading Forecasts on Major Pairs (May 19 - 23, 2014)

Discussion in 'Technical Analysis' started by Currency Expert, May 16, 2014.

  1. Currency Expert

    Joined:
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    Here’s the market outlook for the week:

    EURUSD
    Dominant bias: Bearish
    This currency trading instrument has been bearish since last week. From a high of 1.3993, the price dropped by over 340 pips, reaching the support line at 1.3650. The support line has brought about a temporary halt in the bearish journey. This halt resulted in an upward bounce that has taken the price above the support line at 1.3700. The support line at 1.3750 should act as a barrier to further rally in the context of a downtrend. The bearish journey is supposed to continue when the price breaks the support line at 1.3650 to the downside, targeting another support line at 1.3550.

    USDCHF
    Dominant bias: Bullish
    The current upward move has been the strongest trending move on the USD/CHF since April 2014. From a low of 0.8700, the price skyrocketed by over 250 pips, topping at the resistance level of 0.8950. There has been a short-term pullback which has been challenged at the support level of 0.8900. In case of more determined bears’ machination, the pullback could also be challenged at the support level of 0.8850. Generally the price ought to go further upwards, breaking the resistance level at 0.8950 to the upside as it goes towards another target at the resistance level at 0.9050.

    GBPUSD
    Dominant bias: Bearish
    The pair gave way to gravity as well: it went down toward the accumulation territory at 1.6750 before the price experienced some shallow rally. The rally is seen as a temporary thing in the context of a downtrend. It is something that allows the bears to sell short at a better price. The next target is at another accumulation territory of 1.6650, which could be reached within the next several trading days.

    USDJPY
    Dominant bias: Bearish
    There is a confirmed bearish outlook on this market, though the bearish run is not as strong as other JPY pairs. There is also a recalcitrant demand level at 101.50. This demand level has succeeded in rejecting further bearish move – it did that last week and this week. The price needs to breach the demand level to the downside and close below it, for the bearish outlook to continue o be valid.

    EURJPY
    Dominant bias: Bearish
    This cross is in a downtrend and it is currently challenging the demand zone at 139.00. The demand zone has a high probability of being breached to the downside. When this happens, the price could target another demand zone at 138.00.

    This forecast is concluded with the quote below:

    “With the changes in the perception of Forex trading from being a high speed, high risk gamble, to being a scientifically driven investment vehicle, supported by social media, there are likely to be many more Forex traders in the coming years.” - Razi Hammouda

    Source: www.tallinex.com
     
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