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Thursday, February 6, 2014

Weekly Trading Forecasts on Major Pairs (February 10 - 14, 2014)

There have been significant reversals that threaten the major biases in the markets. However, for the reversals to be confirmed as established biases, they would need to hold out for a few more days; otherwise they would be termed as transitory breakouts.

EURUSD
Dominant bias: Bearish
Following the latest bullish breakout in this market, the bearish bias is almost over. There have been significant reversals that threaten the major biases in the markets. However, for the reversals to be confirmed as established biases, they would need to hold out for a few more days; otherwise they would be termed as transitory breakouts. It is not sensible to quickly assume this is a bull market: the price would need to go above the resistance line at 1.3600, and hold itself above it constantly before the bias can be termed bullish.

USDCHF
Dominant bias: Bearish
Could this pair be going in positive correlation with the EURUSD? This is not a surprise for it happens sometimes. The new bearish outlook in the market should be taken with caution, for it would not really be confirmed until the price maintains its stance below the support level at  0.9000. In the charts, it takes time for Bullish and Bearish Confirmation Patterns to be formed or get violated. In the process, one may stay away from the market when there are mixed signals in the chart, until there is a confirmed directional movement.

GBPUSD
Dominant bias: Bearish
There is a drop and a consolidation phase on the Cable – something which is still extant. The bearish outlook on the market is still very much clear, irrespective of the relatively weak bullish attempts in the market. There is no conspicuous breakout in the market; thus the bullish attempts could be halted at 1.6350, as the price falls further.

USDJPY
Dominant bias: Bearish
On this currency trading instrument the supply level at 102.50 should act as a serious hurdle to the current bulls’ machination, unless the price succeeds in breaching that supply level to the upside, closing above it and remaining above it. Without this condition being fulfilled, the price could drop before reaching the aforementioned supply level.

EURJPY
Dominant bias: Bearish
There is a violent threat to the dominant bearish bias which could lead to a Bullish Confirmation Pattern when the price goes above the supply zone at 139.00. The failure of the price to do this could result in another leg down in the price. Until there is a more conspicuous direction in the market, it would be nice to refrain from taking a position.

This forecast is concluded with the quote below:

“Multiple markets continue to offer plenty of opportunities to prepared traders.  The keys are awareness, preparation, and execution.” – DR. Van K. Tharp




Eye-opening trading lessons: http://www.harriman-house.com/experttraders

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