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Sunday, April 14, 2013

Weekly Trading Forecasts (April 15 - 19, 2013)

EURUSD
Primary trend: Bullish
The EURUSD is no longer in a bearish mode. This famous pair has shrugged off any bearish pulls and has resumed an extended bullish mode. This is a fact that is supposed to be valid for the next several trading days, though there could be some southward retracements along the way. The retracements ought not to take the price below the support line of 1.3000. Meanwhile, the price could reach the resistance line around 1.3200.

USDCHF
Primary trend: Bearish
This pair remains bearish, but the bearish steam is not that strong, since there has always been some cut-throat tussle between the bear and the bull. This is the reason why the bearish momentum is not that strong. Recently, the price was hovering around the support level at 0.9300; there must be some perpetual movement below that level for the bearish bias to be valid, otherwise, there would some northward correction that could touch the resistance level of 0.9400.  

GBPUSD
Primary trend: Bullish
The Bullish Confirmation Pattern on the chart remains extant (the indicators also confirm that the Cable is in a bullish mode). At the upside breach of the territory of 1.5400 to the upside, the price could go on towards the distribution territories of 1.5500 and 1.5600. Yet, there would be some bearish pulls along the way, but the pulls are not expected to take the price below the accumulation territories of 1.5300 and 1.5200 at worst.

USDJPY
Primary trend: Bullish
Since the bullish runs on all the JPY pairs started, the USDJPY has gone upwards by close to 700 pips (from a low of 92.71). Nevertheless, there is a very big supply level around 100.00 and the price would have some great difficulty in breaking that level to the upside. It can be said that there would be sharp reversals around this level, but they ought not to take the price below the demand levels of 99.00 and 98.50. For the current bullish outlook to be valid, the price must break the supply level at 100.00 to the upside.

EURJPY
Primary trend: Bullish
From the low of 119.10, the price on this cross has skyrocketed by more than 1100 pips. The Bullish Confirmation Pattern on the chart is extremely strong, but the price is now approaching some important supply zones, which must be broken to the upside, for the primary trend to continue to be valid. Any short-term pullbacks ought not to take the price below the demand zone of 129.00. In the long run, the price might reach the supply zones of 131.50 and 132.50.   


Conclusion: Market approaches that are based on prognosis ought to be done with some form of rationality. If you are not aware of the recent facts in the market, how can you deal with the future facts? When you know the recent developments in the markets, and the right thing to do next, then you have a profitable trading approach. 

This article is concluded with the quote below:

“Markets exist to facilitate trade.  That means making it easier for buyers and sellers to transact.” - D.R. Barton, Jr.



For more articles, go to: http://www.paxforex.com/forex-blog

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