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Thursday, February 20, 2014

Weekly Trading Forecasts on Major Pairs (February 24 - 28, 2014)

Here’s the market outlook for this week:

EURUSD
Dominant bias: Bullish
The outlook on this pair remains bullish unless the price crosses the support line at 1.3650 to the downside. Right now, the price action looks like a clean opportunity to buy long when there is a dip in the price and in the context of an uptrend. Should the price reverse to the upside, it would target the resistance lines at 1.3750 and 1.3800 respectively. It may even be possible for the market to go beyond the target next week or next month.  

USDCHF
Dominant bias: Bearish
The bias on this pair remains southward unless the price goes above the resistance level at 0.8950. The current price action in the market proffers the chance to sell short when the price rallies in the context of a bearish market. When the price goes further south (as it is expected), it may challenge the support levels at 0.8850 and 0.8800. There is even a possibility that the price may overcome those support levels and go further southward.

GBPUSD
Dominant bias: Bullish
Between February 10 to February 14, the Cable moved upwards by over 410 pips. That was a significant bullish movement indeed! The price slashed through the accumulation territory at 1.6800, but it did not close above it. Since February 17, the Cable has retraced southward by close to 170 pips; yet the bullish outlook is still valid (though seriously threatened). As long as the price is able to stay above the accumulation territory at 1.6550, it would be assumed that it could be given a new lease of stamina.

USDJPY
Dominant bias: Bullish
This market has been choppy for more than 2 weeks, but the bulls have been able to refuse a total domination by the bears. In spite of the choppy situation, there are still short-term trading opportunities here; and therefore, short-term strategies are recommended. Any probable bullish breakout could take the price above the supply levels of 103.00 and 103.50. Then, the demand level at 102.00 could act as an immediate hurdle to possible southward pulls.

EURJPY
Dominant bias: Bullish  
Since last week, the EUR/JPY has been a bullish market. However, the bullish movement has been limited because of some occasional surges of strength in the Yen. Given the Bullish Confirmation Pattern in the market, the price could target the supply zone at 141.50; and should that zone be overcome, the price could then go towards another supply zone at 142.00.

This forecast is concluded with the quote below:

“In trading, it's not whether you win or lose, but how much you profit on a winning trade compared with how much you lose on a losing trade. If you can cut your losses and move on, you'll survive. It makes sense, logically, but psychologically, many traders have trouble cutting their losses.” – Joe Ross


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



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