Weekly Trading Forecasts On Major Pairs (October 13 - 17, 2014)

[⭐ analyst75]

Here’s the market outlook for the week:

EURUSD

Dominant bias: Bearish

Recently, this pair made some commendable effort to rally, but the Greenback is still very determined to continue showcasing its strength. The attempted rally in the market had almost invalidated the bearish outlook before the bears succeeded in pushing the price significantly south. The price is now under the resistance line at 1.2650, and should the bears hold out long enough, the price could test the support line at 1.2500 again.

USDCHF

Dominant bias: Bullish

The weakness on the EURUSD has invariably had salutary effect on the USDCHF. There was a pullback that almost resulted in a Bearish Confirmation Pattern, but the bulls were again able to push the price upwards, allowing it to go above the support level at 0.9550. With further bullish determination, the price may end up reaching the resistance level at 0.9701 – which is a level that has long been targeted by the bulls.

GBPUSD

Dominant bias: Bearish

Since the Cable is positively correlated with the EURUSD, it is no wonder that the former would go almost in the same direction with the latter (in most cases). There was a noticeable attempt to push the price upwards. However, the bears subjugated the bulls and ended up pushing the price downwards; which allowed the Bearish Confirmation Pattern to form in the market. Further southwards movement in the price may enable it to reach the accumulation territory at 1.5950 again.

USDJPY

Dominant bias: Bearish

Yes, the JPY is strong and the mighty USD is not even spared. This currency trading instrument has been going downwards recently, making it illogical to go long. Nevertheless, the demand levels at 107.50 and 107.00 may succeed in halting the bearish movement. While it is possible that the price may test the aforementioned demand levels, the possibility of a rally exists for next week, which may bring the price towards the supply levels at 109.00 and 109.50.

EURJPY

Dominant bias: Bearish

This market dropped by over 140 pips this week, breaching the demand zone at 136.00 to the downside. The demand zones at 135.50 and 135.00 may be tested, but they may end supporting the bullish effort, since it is possible that most JPY pairs may rally this week. Should this prove to be correct, the price may reach the supply levels at 137.00 and 138.00.

This forecast is concluded with the quote below:

“I have always been fascinated by being successful in the markets and making my way there.” – Rene Wolfram