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Saturday, July 18, 2015

Weekly Trading Forecasts on Major Pairs (July 20 - 24, 2015)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish
EURUSD dropped by 280 pips last week, going below the resistance lines at 1.0950 and 1.0900. The resistance line at 1.0900 (and of course the resistance line at 1.0900) was an adamant obstacle to bears’ interest. Now that the obstacle has been overcome, the next targets for the bears are the support lines at 1.0800 and 1.0750. The aforementioned resistance lines should server as obstacles to bullish attempts this week, for their breach would mean a threat to the current bearish outlook.  

USDCHF
Dominant bias: Bullish   
This pair went north by over 200 pips last week, going above the support levels at 0.9500, 0.9550 and 0.9600. The support level at 0.9500 (which was formerly a resistance level) really proved obstinate for the bulls because it opposed bullish effort for over 2 weeks while the bulls kept on besieging it.  Once the opposition was overcome, price was able to rally smoothly. Since price has closed above the support level at 0.9600, it is possible that the resistance levels at 0.9650 and 0.9700 will be aimed at. This bullish bias might go on till the end of the month, but things could change in the wake of a strong stamina in CHF, which is expected by the end of the month.

GBPUSD
Dominant bias: Bullish  
Cable rose significantly last week, battering the distribution wall at 1.5650. Bears have been fighting back at that distribution wall, making it hitherto impossible for bulls to breach it. Nevertheless, the bulls have continued to struggle for supremacy, and that is the reason behind the current consolidation in the market. Price shall go out of balance this week, and it is most probable that the bulls would overcome.  

USDJPY
Dominant bias: Bullish   
Since testing the demand level at 120.50, this currency trading instrument has gone upwards by 350 pips. The persistent bullish movement has put an end to the recent neutral outlook in the market – for the outlook is now bullish. However, price needs to go towards the supply level at 124.50 and break upwards through it; otherwise there could be a massive bearish correction this week or next week.
                                                                                                                               
EURJPY
Dominant bias: Bearish
This cross would continue to go south as EURUSD keeps going south. The only hope of a meaningful rally here is an event in which the Euro becomes very strong; otherwise price would continue to drop further and further (whether speedily and gradually). This bearish force is formidable here, coupled with the expectation of a massive gain in the Yen itself around the end of this month.

This forecast is concluded with the quote below:

“What makes trading so fascinating and, at the same time, difficult to learn is that you really don’t need lots of skills; you just need a winning attitude.” – Mark Douglas
                                                                                                  

  
What Super Traders Don’t Want You To Know: http://www.advfnbooks.com/books/supertraders/index.html



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