Weekly Trading Forecasts on Major Pairs (July 25 - 29, 2016)

[⭐ analyst75]

Here’s the market outlook for the week:

                                          

EURUSD

Dominant bias: Bearish

This pair consolidated to the downside last week, moving south by only 100 pips and closing above the support line at 1.0950 on Friday. There is a “sell” signal in the market and price might test the support lines at 1.0900, 1.0850 and 1.0800 this week, because USD is expected to gain some stamina. Most major pairs did not move significantly last week, but movements in the markets this week would be stronger than the movements last week.

 

USDCHF

Dominant bias: Bullish  

Last week, USDCHF was able to maintain its bullishness despite constant threats from bears. Price did not go upwards strongly but it is now above the important support level of 0.9800. There is a major obstacle to bulls, located at the resistance level of 0.9900. Bulls have carried out failed attacks into that resistance level, and they are yet to give up doing that. This week would be decisive, since bulls must breach the resistance level at 0.9900 to avoid a clear pullback in the market. One factor in their favor is the expected stamina in USD this week.    

 

GBPUSD

Dominant bias: Neutral

Cable merely went sideways last week: An action that resulted in a neutral outlook in the short-term.  This week will witness a serious battle between bulls and bears, for bulls would want to push Cable upwards, whereas USD might gain some strength of its own, thereby making the bullish movement a bit difficult. This week, there would be mixed results on GBP pairs, for GBP would be strong versus some currencies like AUD and NZD, while it might because weak versus other currencies like JPY.

 

USDJPY

Dominant bias: Bullish  

This currency trading instrument went upwards by 200 pips last week, almost reaching the supply level at 107.50. Further bullish movement was rejected at that point and price got corrected lower by roughly 150 pips. Although there is a Bullish Confirmation Pattern in the 4-hour chart, the outlook on JPY pairs is bearish for this week. This means USDJPY could get corrected lower and lower; while the only factor that could help bulls is a possible strength in USD.      

                                                                                                                               

EURJPY

Dominant bias: Bullish

This cross made some effort to push price upwards. Price topped at 118.46, and the bullish effort was paused at that point. Since JPY pairs could go south this week, the demand zones at 115.50, 115.00 and 114.50, could become potential targets for bears.  In case bears are able to push the market below the demand zone at 114.00, things would have turned bearish on the market.  

 

This forecast is concluded with the quote below:

 

“Don’t let your day job keep you from indulging in the lucrative market.” – Ryan Mallory

 

Source: www.tallinex.com